What Is the Minimum Margin Requirement and How Does It Relate to Leverage Risk?
The minimum margin requirement is the smallest amount of equity a trader must maintain in their account to keep a leveraged position open. It is expressed as a percentage of the total position value.
A lower requirement allows for higher leverage, which amplifies both potential gains and losses. High leverage means a small adverse price movement can quickly drop the account equity below the minimum margin, instantly triggering a margin call and forced liquidation.
