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This is the interest rate charged by the broker for borrowing funds to trade on margin.
The level where the broker auto-closes positions if balance drops below maintenance margin.
This is the minimum amount of funds that the trader must deposit to open a margin position.
The maintenance margin is the minimum amount a trader must keep in the account to hold a margin position. If the account balance falls below this level, the stop-out level is triggered, and the broker may automatically close the position to prevent further losses.
By using borrowed funds, traders can take larger positions than with their own capital.
Margin trading allows traders to potentially earn more by leveraging positions.
Take positions in multiple markets or securities to diversify your portfolio.
Use margin trading as a hedge to protect against potential losses in other positions.
Profit from falling markets by short selling securities through margin trading.
Quickly adjust your positions in response to changing market conditions.