Margin is a term that traders use to describe the amount of money they have in their accounts to open a trade. You must always retain sufficient margin in your account to retain an open position.

Margin is used in forex and CFD trading to allow a trader to take positions of a higher value than the amount of funds in their trading account. The amount is not borrowed money but is part of the balance. This ensures there are funds in the account to cover potential losses in the event of volatile market conditions.

The term “margin” is often used interchangeably with "leverage".

IMPORTANT: For accounts under the CySEC License the leverage is fixed at 1:30.

Initial Margin, Free Margin, Variation Margin, Total Margin, and Margin Level

• Initial Margin is the minimum balance required from your account to open a trade.
• Free Margin, also known as "Usable Margin," is the amount available in your account you can use to open more trades. It is also the amount that allows you to move against the market movement before reaching a margin or liquidation call. It is equivalent to the difference between Equity and Total Used Margin.

Free Margin = Equity* – Open Positions

 *Equity = Balance +- PnL (profit and loss)

• Variation Margin is the unrealized profit (or loss) on open positions or transactions.
• Margin Level indicates the health of your account. It is indicated in percentage terms.

Margin Level = (Equity x 100) / Margin

• Total Margin requirement is simply the sum of these two amounts, and you must maintain at least this amount in your Axi account at all times.