Margin trading

Margin trading is taking a position larger than your deposit, the margin. A US broker lends you cash at interest; on a margined contract nothing is borrowed, the margin is marked against the position every second, and the holding cost is funding, not interest. One margined trade on a practice venue; margin on Mochatrade.

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In the help centreSee how leverage and margin work on Mochatrade
  • Leverage in tradingLeverage is controlling a position bigger than the money you put up. At 5x, ₹10,000 of margin controls ₹50,000, so a…
  • Margin interestMargin interest is what a US broker charges, daily, on cash it lends you to buy shares. A perpetual contract has no…
  • Buying powerBuying power is the position value your free margin can open at the allowed leverage: ₹20,000 at 10x is ₹2,00,000. It…
  • Liquidation / forced square-offLiquidation, or forced square-off, is the venue closing a leveraged position because the margin can no longer cover…
  • Mark priceThe mark price is the price a venue judges your position by, for unrealised profit and liquidation, built from the…
  • Round-trip trading costRound-trip cost is everything a trade costs from entry to exit: the spread twice, the fee twice, slippage, and funding…

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.

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