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The margin is not necessary to protect capital

Robert Hills

Active Member
No matters how much money traders have, but the margin is required for trading. But the margin is not necessary to protect capital. Traders need to control their risk. Traders don't have to increase the lot size to get huge profits. If traders have a good strategy, they can do it slowly. Practice in the demo account as much as possible. Cause many brokers offer it for free.
 
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If you want to stay in the market and keep position open you have to maintain sufficient margin so your broker won't close the trade. So in some sense margin protects you from a loss.
 

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