Glossary - M

This glossary defines terms used throughout SMC Trader.  A version of this glossary is also accessible through the SMC Trader platform.

The definitions are broken down as simply as possible to ensure you have full understanding of how the SMC Trader works.

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Margin »

The amount of equity (collateral) required to fulfil an investment position, as a percentage of the current value.

When trading on margin (also called 'gearing', or 'leverage'), you need only deposit a fraction of the current value of the instrument you are investing in.

For example if the commodity you are trading in requires a margin of 5%, this allows you to gear (or leverage) your investment 20 times. In other words, a deposit of USD 10.000 can hold a position of USD 200.000.

For more information on the trading conditions at , go to your SMC Trader and click Account > Trading Conditions.