How do I know if I have enough money to open a trade position?

The money required to open and maintain a leveraged trading position is known as the margin. It is vital to ensure you retain enough margin in your account at all times, or your trades may be automatically stopped out (closed).

The amount of margin allocated to a trade is up to the individual trader, but will usually be dependent on the trader's goals and risk tolerance. For example, a relatively small amount of money combined with high leverage can deliver a higher potential return, but it will also increase the risk of high losses.

To help calculate the margin, please refer to our online Trading Calculator.