Margin is used in trading CFDs to allow a trader to take positions of a higher value than the amount of funds in their trading account. There are two different kinds of margin:

• Initial Margin – refers to the minimum amount you need to have in your account to open a position, and
• Variation Margin – it is based on the current value of all open positions.

What is Margin Call?

Margin Calls are notifications triggered when the Equity in a margin account drops below a specified minimum level. In simpler terms, if your account does not have enough funds to offset potential losses, a Margin Call occurs, putting your position at risk as the stop-out level approaches.