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

LeverageFutures

See it in practice

Position size calculator

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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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.