As ForexGen Broker “Margin” literally means a difference, or reserve. In this sense, margin trading is to trade securities backed by a deposit of money (the deposit serves as collateral to your account). The margin is measured in percentages from the total value of the position, for example a 1% margin of a 1000-lot position is equal to 10 lots.
And you can trade margin so you could trade on margin stocks, currencies or indices. The key feature of margin trading is that if you would like to buy 1000 IBM shares with a total value of $94 450, for example, you do not need to possess the full amount in your account in order to do this.
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