Margin refers to borrowing money from your broker to buy stocks. Instead of paying the total price upfront, you only need to deposit a portion. It allows you to leverage your investments, potentially increasing your returns. However, it also carries risks, as losses can exceed your initial investment.

There are several types of margins:

·        Initial Margin: Initial Margin is the upfront deposit necessary for traders in futures contracts. This deposit ensures enough balance in your account for daily settlement, even if there's a loss.

·        Maintenance Margin: Maintenance Margin is an extra deposit required beyond the Initial Margin. Its purpose is to maintain your account balance above a certain level, serving as a safety net for Margin. If your balance falls below this level, you'll be asked for an Additional Margin.

·        Additional Margin: It is an extra amount requested by your broker when your account balance falls below the maintenance margin. Its purpose is to safeguard your open positions from abrupt market fluctuations, ensuring that you have adequate funds to cover potential losses. 

·        Variation Margin: Also referred to as mark-to-market margin, this is the daily amount that a trader may need to deposit or remove from their account to reflect changes in the value of their positions.

·        Margin Call: A trader may receive a margin call from their broker if the value of their account drops below the maintenance margin threshold, in which case they will need to make further deposits to satisfy the margin obligations.