Margin - Banks and/ or online trading providers need collateral to ensure that investor can pay in the event of loss. The margin is also know as minimum security in Forex market.
Margin enables private investors to trade in markets that have high minimum units of trading, by allowing traders to hold a much larger position that their account value. Margin also enhances the rate of profit / loss beyond that taken without leveraging .
Maintenance margin (M.margin) The main reason for (M.margin) is to ensure the necessary amount is available in the events of a "sleep-page" or "gap" in rates, M.margins are also used to cover administrative costs.
Margin Call- A request from a broker or dealer for additional funds or other collateral to guarantee
performance on a position that has moved against the customer.
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