In the online markets, margin refers to the amount of capital required to open and maintain a new position.
In other words, you can think of it as a portion of your funds set aside by the broker to keep your trade open and possibly cover a potential loss.
A rargin requirement is the percentage of the total size of the position you wish to open that is required for opening and maintaining the position.
Example:
A trader deposits 1,000 USD in his account and wants to go long on USDJPY by opening a position of 1 lot (100,000 units of the base currency).
Since USD is the base currency, this means the total size of the position is worth 100,000 USD
Since the margin requirement is 0,10%, you would need to have a margin of 100 USD to open this trade.
Below is a table of margin requirements according to Amega's policy:
ASSET TYPE | MARGIN REQUIREMENT |
Forex | up to 0.10% |
Shares | 5% (fixed) |
Indices | 5% (fixed) |
Metals | 0,5% (fixed) |
Energy | 5% (fixed) |
Commodities | 5% (fixed) |