The real difference between the entire value of the assets held in a margin account and the loan sum sought from a broker to complete a deal is known as margin.
Margin trading is the practise of borrowing money from a broker using a person’s asset as collateral. The money earned is afterwards put to use through trading. To buy on margin, an investor must create a margin account and put up a minimal down payment. The minimal margin is the amount that serves as the leverage.
Initial margin refers to the total amount invested in the transaction, while maintenance margin refers to the total amount held in the margin account.