Margin in CFD trading allows traders to take positions of a higher value than the amount of funds in their trading account. There are two different kinds of margins:

• Initial Margin – The minimum amount you need to have in your account to open a position, AND
• Variation Margin – Based on the current value of all open positions.

What is a Margin Call?

Margin Calls are notifications triggered when the equity in a margin account drops below a specified minimum level. In simple terms, if your account does not have enough funds to offset potential losses, a Margin Call occurs, putting your position at risk as the stop-out level approaches.