Initial margin requirement definition

A trader looking to trade €100,000 in the forex market place may pay €10,000 to a brokerage as a 10% initial margin requirement and would still get the total €100,000 exposure through the brokerage.

You can calculate the initial margin requirement by multiplying the margin percentage by the purchase price of a given asset. The margin percentage may differ depending on the market and the leverage offered by your brokerage.

In a simplified example, you are looking to buy €100,000 worth of a security through a brokerage that requires an initial margin of 50%, your initial margin requirement will cost €50,000.