Margin

Margin is the money a trader must deposit with a broker to trade futures or borrow to buy shares. If prices move against them, they face a margin call to add more money, or the position is closed automatically.

Why It Matters

Margin calls force sales at the worst possible moment, which is why leveraged markets fall so fast.

In India

Exchanges raised margin requirements during the 2026 metals crash, forcing traders to sell more.