เรียนรู้ / investing

Reserved margin supports exposure but does not define the loss limit

Margin level and free margin describe the account’s funding position.

Dukascopy’s margin guide describes funds set aside when a leveraged foreign-exchange position is opened. The reserved amount supports a trade larger than the deposit itself. It is therefore different from a transaction fee and different from the position’s full notional value.

The article explains the relationship between equity, used margin and the remaining capacity available for positions. An adverse move reduces equity and can place the account closer to a margin call or automatic close-out. Those thresholds depend on the relevant account and provider rules rather than a universal number.

The guide also mentions calculators as a way to translate instrument size and requirements into a deposit estimate. This summary treats the result as a funding calculation, not a measure of the maximum potential loss. Leverage continues to affect the financial consequences of ordinary price changes even when sufficient margin is initially posted.

Image source: Dukascopy Bank SA

Research sources & methodology

Original sources and publication references.

ชุมชน

Tell us what you are researching. We will review your request.