What is the difference between Initial margin and margin level?
When trading FX you need initial margin in order to trade, this is the amount required to be collateralized in order to open a position. Every time you execute an order, a certain percentage of your account balance is locked as initial margin requirement for this new trade.
Margin Level is an identification number, which shows the relation between Margin and Equity. It reflects the level of capital tied up in your account.
When trading FX you need initial margin in order to trade, this is the amount required to be collateralized in order to open a position. Every time you execute an order, a certain percentage of your account balance is locked as initial margin requirement for this new trade.
Margin Level is an identification number, which shows the relation between Margin and Equity. It reflects the level of capital tied up in your account.
How I understand the margin - the amount of money needed as a “good faith deposit” to open a position.
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What is the difference between Initial margin and margin level?