Glossary
Margin: meaning, example and why it matters
Money you must deposit with a broker to open certain positions, such as futures. It is a deposit against possible losses, not a fee.
Worked example
A futures position worth ₹4,00,000 with a 15% margin requirement needs ₹60,000 deposited. The deposit is not a fee: it stays with the broker as security and is adjusted for profit and loss when the position closes.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
Margin is what lets you hold a position larger than the cash you deposit, and it is why losses can outgrow the deposit.
Related terms
See it in practice
Frequently asked questions
Is margin a cost?
No. It is a deposit against possible losses. Brokerage, taxes and other charges are separate.
Is this page investment advice?
No. Margin is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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