What is margin and why is it important to FX trading?
A key feature of trading foreign exchange is that you trade using a margin, or deposit a fraction of the overall value of the trade you place. Fluctuations in the underlying currency pair can quickly lead to profits or losses. It is possible that you could lose some or all of your initial investment. You may be subject to daily margin calls if you leave your position open overnight. However you cant lose more than the funds within your account because the broker will automatically close positions while there is some margin available in your account.
