Margin, in the context of the forex market, is a fundamental concept that traders must grasp to navigate the complexities of currency trading successfully. Margin, simply put, is the collateral required by brokers to facilitate leveraged trading. It allows traders to control positions larger than their account balance, potentially amplifying profits but also increasing exposure to losses. To harness the power of margin effectively, it is crucial to comprehend the distinctions between initial margin and maintenance margin.
RISK WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.9% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please click here to read full Risk Disclosure.
FX Central Clearing Ltd (www.fxcc.eu) provides services to the residents of countries from the European Economic Area (EEA) only.
FX Central Clearing Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC), under CIF Licence Number 121/10 and operates under the EU Markets in Financial Instruments Directive (MiFID).