1. What is Margin?
Margin refers to the funds frozen by the system to maintain open positions. It is not a trading cost, but a “deposit” temporarily reserved.
📌 Once the position is closed, the margin is released immediately.
2. How is Margin Calculated?
Formula: Margin = Contract Size ÷ Leverage × Exchange Rate (if applicable)
✅ Example: Trading 1 lot EUR/USD with 1:100 leverage
Contract Size: 100,000 EUR
Leverage: 1:100
Required Margin: 100,000 ÷ 100 = 1,000 EUR (automatically converted to USD)
3. Common Margin Terms
Initial Margin: The minimum margin frozen when opening a trade
Maintenance Margin: Minimum equity required to maintain a position, otherwise forced liquidation may occur
Free Margin: Balance available for opening new positions or absorbing losses
Margin Level: (Equity ÷ Used Margin) × 100%, used to assess account health
4. AFT Margin Call & Liquidation Mechanism
Margin Level ≤ 50%: System sends a warning
Margin Level ≤ 10%: Forced liquidation begins, closing the largest losing positions first
📌 AFT platform provides Negative Balance Protection, ensuring account balance never goes below zero even during extreme volatility.