Forex Broker Margin Requirements

The margin amount is a percentage of your account balance. This is your "safety net" that protects you from any possible loss. This is the money you put in when you open a position and it is released back into your account after your trade is closed. Margin is usually expressed as a percentage of the full position size, also known as "notional value". This amount may vary depending on the forex broker and currency pair you trade.

As a forex trader, you also need to know about forex spreads. In the foreign exchange spot market, currencies are priced in pairs, and the higher the price, the higher the brokerage commission. If you don't understand the spread, you could end up paying more than you expected. Wider spreads can make or break your trade. You should never limit your trading to only the broadest range of brokers. The difference between profit and loss may be half a point.

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