Complete Guide to Margin Trading | Learn Trading
Margin trading is the act of borrowing money from a broker to trade stocks, selling with a profit margin, and settling the broker after a successful trade.
Margin Trading
An act of borrowing money from a broker to trade stocks, selling the stocks with a profit margin and settling the broker after a successful trade is termed as Margin Trading.
Quick answer
How does margin trading work?
Margin trading means borrowing purchasing power from your broker. You deposit a sum as collateral, the broker lends against it, and you control a larger position than your capital alone allows; at the end of the trade you settle the loan and keep the difference. Leverage multiplies gains and losses alike.
- Your deposit is collateral — it is not the full price of the position.
- MintCFD publishes 1:500 leverage on forex and commodities during the trading session.
The ratio per asset class, including the overnight and weekend rules, is on margin requirements; what funding an account costs is on charges & fees.
Margin Trading at a Glance
What each asset class costs in margin, and what MintCFD charges to get funds in and out.
Leverage in the session
| Forex | 1:500 |
|---|---|
| Commodities | 1:500 |
| Indices | 1:200 |
| US stocks | 1:200 |
After the session
| Overnight, forex and commodities | 1:500 |
|---|---|
| Overnight, indices | 1:200 |
| Overnight, US stocks | 1:50 |
| Weekend, all four classes | 1:50 |
Ratios are the matrix on margin requirements, in force from 29 December 2025: the weekend figure of 1:50 applies to instruments that do not trade around the clock, and those that do stay at 1:500. Margin is not a fee — MintCFD publishes no deposit fee on any method (charges & fees) and no fixed spread figure anywhere on the site. A free demo account lets you practise with virtual funds first.
What is Margin Trading?
In Margin Trading, traders get to hold larger positions or buy more assets than their actual deposit would otherwise allow.
Started with Intraday trading communities, now Margin Trading is getting relaxed in terms of time duration and becoming applicable to all modes of trading.
MTF or Margin Trading Facility account offers resources to get more number of stocks, with the limited capital one deposits. Keeping it as a collateral, the broker lends the extra money.
How to trade on margin with MintCFD?
Open your free account in just 4 minutes and hold larger positions with the Margin Trading Facility.
Create your account
Verify your account
Make your first deposit
You're all set. Start trading
Learn more about stocks
Our knowledge section has info to get you up to speed and keep you there.
What is a dividend?
A dividend is a payment made by a corporation to its stockholders, usually out of its profits. Dividends are typically paid regularly (e.g., quarterly) and made as a fixed amount per share of stock—the more shares you own, the larger the total dividend payment you’ll receive.
Read MoreWhat is Income Tax?
Income tax is a type of direct tax that a government imposes on its people’ earnings. The central government is required to collect this tax. Every year, the government can adjust the income slabs and tax rates.
Read More