Margining

FX Margin:

Margin is a term derived from the futures market, and provides for leveraged trading in financial products.
In its most simple format, if you offered the trading of an instrument at 1% margin, in effect you need only to deposit 1% of the total purchase cost of that deal to open that position.

Example 1 :
You buy 200,000 GBP/EUR spot @ 1.45.
This provides a notional position of 200,000 x 1.45 (sold 290,000 EUR). FX contracts are margined at 1% so you would need at least £2000 Initial Margin to open this position.

Example 2 :
You sell 150,000 USD/CHF Spot @ 1.30.
This provides a notional position of 150,000 x 1.30 (brought 195,000 CHF). FX contracts are margined at 1% so you would need at least $1500 Initial Margin to open this position.