Mar 3, 2025
Margin trading enables traders to leverage their trading positions by taking out money from a broker. Such a leveraged mechanism offers the
Margin trading enables traders to leverage their trading positions by taking out money from a broker. Such a leveraged mechanism offers the possibility of controlling a higher position than their own available capital otherwise allows. In order to control risks, brokers use margin requirements as collateral that protects against conceivable losses. SPAN margin and conventional margin are two of the most commonly applied margin systems, each with its own benefits and compromises.