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without a good understanding of margin when trading forex you will not understand how to manage risk the idea of using margin is that you can use your money to control a larger position in a market that you otherwise could not a margin trading account is simply a brokerage account that allows the trader to use money borrowed from a broker to trade youre borrowing money so you can place a larger position size for your trade or investment opportunity the higher the margin level percentage means the more free margin you have available to trade the lower the margin level percentage figure means the greater the used margin compared to your equity is for many brokers the margin level percentage is limited to no less than one hundred percent if this is the case with your broker then you need to be aware of this so you dont use up all your margin its important to know that if any of your open positions go into drawdown then your equity will decrease and this will impact your margin level a
