What is Margin?

Margin is borrowing from your broker to trade with more than your own cash. It is closely related to leverage: margin is one of the main ways traders get leveraged exposure.

How margin works

In a margin account, your broker lends you money against the value of your account, which acts as collateral, so you can hold larger positions than your cash would allow. You pay interest on the borrowed amount. If the market moves against you and your equity falls below the broker’s required level, you can get a margin call, which means you must add funds or the broker may close positions to cover the shortfall. That forced selling can lock in losses at the worst time.

Why it matters in copy trading

Whether copied trades use margin depends on your own account, not the platform. If your account is a margin account, a copied order can draw on that borrowing, which increases both potential gains and the risk of a margin call. Keeping copied positions conservatively sized relative to your cash, and using exposure and daily-loss limits, helps you avoid margin calls and the forced selling that comes with them.