Margin planning basics

Margin planning basics involve calculating the amount of capital needed to open and maintain a position in trading. It starts with understanding the initial margin, which is the minimum amount required to open a trade, and the maintenance margin, the minimum balance to keep the position open. Traders use leverage to control larger positions with less capital, but this amplifies both profits and risks. Proper margin planning includes assessing position size based on risk tolerance, setting stop-loss orders to manage potential losses, and adjusting margin levels during market volatility to avoid margin calls and forced liquidations.