Series 34 Exam » Definitions & Terminology » Collateral/Security Deposit/Margin

Collateral/Security Deposit/Margin

Collateral/Security Deposit/Margin

Margin, also called collateral or security deposit, is the amount that must be deposited in a trading account in order to control a lot of a currency. If the leverage in the account is 100:1, then the margin required will be 1% of the value of the lot. If the leverage in the account is 200:1, then the margin required will be 0.5% of the value of the lot.

Study Guide >> Definitions and Terminology >> Collateral, security deposit, margin

This entry was written by vbala, posted on June 1, 2009 at 5:11 pm, filed under Definitions & Terminology. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Post a comment or leave a trackback: Trackback URL.

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  1. By Definitions and Terminology on June 29, 2009 at 6:47 pm

    [...] Collateral, security deposit, margin [...]

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