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Learning to Trade

Margin

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Foundational concept · Original lesson

Published November 1, 2026 · Beginner education

THE IDEA, IN PLAIN LANGUAGE

Margin is money a provider requires to support a leveraged position. It is not the maximum possible loss. Falling account equity can trigger a margin call or automatic position closure under the provider’s rules.

KEY VOCABULARY

Margin
Required collateral for a position.
Equity
Account balance adjusted for open profit or loss.

A PRACTICAL EXAMPLE

A position requiring $100 margin can lose more than $100. Read how the provider calculates equity, maintenance requirements and liquidation.

A COMMON MISTAKE

Confusing required margin with a safe risk limit.

WHAT TO REMEMBER

Understand liquidation rules and exposure before any real-money position.

SOURCE REFERENCES

Use these external resources to study further. Explanations here are our own; external resources may change.

RELATED VIDEOS

No lesson-specific video is published here yet. Follow @koufaxbtb on Instagram for existing creator content; it is not a substitute for these source references.

KEEP LEARNING

These are original foundational explanations with source references for further study. Independent editorial verification is pending; no lesson is labeled independently verified. They are not a claim of trading expertise. Demo exercises are labeled; no trading performance is presented. Real-money leveraged trading can cause substantial losses.

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