Category Archives: Forex Trading

The two both relate to the amount of cash vs. the amount you can borrow when investing. In other words, you can’t borrow more than half the price of the investment. Securities in the margin account are paid for with cash loaned to the account holder by the brokerage firm and are designated as collateral. […]

So, suppose the equity value falls below the maintenance margin requirement. In that case, the firm issues a margin call to make the investor deposit the amount required to increase the equity value sufficient to meet the maintenance margin. This scenario also adds a point to the initial margin vs. variation margin. Rather, the initial […]