The concept of margin \x0d\ Margin is the amount of money or financial derivatives contracts that traders have the right to buy or sell. The requirement of this margin is to allow investors to trade in a larger amount with a relatively small deposit. A small margin is one of the main reasons why spot foreign exchange attracts individual investors. \x0d\ Here is an example to help you understand how the required margin ratio is calculated. For example, you have an account with a leverage ratio of 1: 100 (the deposit of 1 USD in the account can control the position of 100 USD), but your broker needs a margin ratio of 100%, which means you need to guarantee/kloc at all times. The margin ratio may change with the change of account size, but for small accounts, the margin requirement of 100% is typical. For a position of $65,438+00,000, you need $65,438+000 in your account, because the leverage ratio of 65,438+00 divided by 65,438+000 is $65,438+000. If the margin balance in your account is lower than the required ratio, your broker may have the right to close your position without any notice. If your broker closes his position, it usually means that your account has lost money and the balance of your account will be reduced. \x0d\ Margin demand depends on account size and transaction volume. If it is lower than the margin requirement, the closing policy of some brokers will close all positions. Some brokers close the largest loss position or part of the loss position until the required proportion is reached again.