Margin is the amount of money that is set aside to open and maintain a trade. It is not a fee or a cost, but a portion of your funds that stays locked while the position is active. It acts like a safety amount that supports the trade.

For example, if a trader opens a $10,000 position with 1:100 leverage, only $100 is required as margin. This $100 remains in the account but cannot be used for other trades until the position is closed.

Margin helps manage how much a trader can take on at one time. If the market moves in the wrong direction and losses grow too much, the position can be closed automatically to prevent further loss.