What is Margin? And what are the types of margin?

Margin is the amount of money or securities that a trader must deposit with their broker to cover a portion of the cost of a trade. It allows traders to leverage their positions by borrowing funds from the broker, thereby amplifying potential gains (and losses) from price movements of securities.

Initial Margin: Initial margin is the amount of money a trader must deposit when opening a position in a margin account.
Maintenance Margin: Maintenance margin is the minimum amount of equity that must be maintained in a margin account after a trade is made.
Additional Margin: Additional margin may be required by brokers during periods of high market volatility or stress.