All terms
Definition
Margin
Margin is the amount of money required to open and maintain a futures trade.
Quick take
Money required to open and hold a trade.
Keep this in mind every time you see margin on the chart — context is everything.
Did You Know?
Day-trading margin can be a tiny fraction of the contract's full value, which is what makes futures so capital-efficient — and so risky.
Common Beginner Mistake
Confusing low margin with low risk. Margin is just the deposit, not the actual amount at stake.