What is Margin?
Margin can be thought of as a good faith deposit required to maintain open positions. This is not a fee or a transaction cost, it is simply a portion of your account equity acting as collateral to deposit to their broker/exchange or service provider.
The Use of Leverage & Margin
One of the main appealing factors about forex trading is the use of Leverage; Margin.It allows you to use a small amount of capital to open and maintain a much larger position. For example, if you want to open a trade of $100,000 worth of EURUSD, you don't have to have that $100,000 dollars in your account.