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Trends & Analysis
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Trends & Analysis
News

Tesla shares spike despite earnings miss

News

Gold loses some shine after hitting record highs

News

Avoid the tech wreck with PayPal?

News

Week Ahead Preview: 22nd of April

News

P&G shares rise despite Q3 sales miss

News

Gold continues to shine amid geopolitical worries

Margin definition

Margin refers to the practice of trading on margin, which is an amount of collateral, similar to a deposit, that allows traders to control larger positions than would otherwise be possible Trading on leverage magnifies both the potential gains and losses of a trade, and a margin account must be kept within a predefined maintenance level, otherwise the trader will incur margin calls. Margin is used in equity, forex and commodities trading.

Trading on margin

Trading on margin involves greater risks that fully funded trading. The maintenance level is set by your broker, and different brokers will offer different levels of margin. The available margin may also depend on the account size and the underlying being traded, with derivative products such as options or CFDs typically permitting greater leverage than debt instruments. Margin trading is very common in the forex market, both spot and futures.

Maintenance level

The maintenance level is the minimum balance specified by a broker for a margin account. Should a traders margin deposit fall below this value, they must top it up immediately, a situation known as a margin call. Such calls can be extremely expensive as they may require the liquidation of other positions in order to meet the demand, and keep the account open.

Start trading with ADSS

ADSS offers a range of global markets for traders, with CFD opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.

 

See all glossary trading terms


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Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.