About Margin Trading
Margin trading refers to the prices or rates at which traders can borrow funds to trade on margin.
Margin trading quotes typically include:
Margin interest rate
This is the interest rate charged by the broker for borrowing funds to trade on margin.
Margin call level
This is the level at which the broker will require the trader to deposit additional funds to maintain the required margin level.
Initial margin requirement
This is the minimum amount of funds that the trader must deposit to open a margin position
Maintenance margin requirement
This is the minimum amount of funds that the trader must maintain in the account to keep the margin position open.
Stop-out level
This is the level at which the broker will automatically close the margin position if the account balance falls below the maintenance margin requirement.