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Position Margin

Collateral required to support open positions, calculated from risk models and adjusted as market prices move.

Position margin is the capital required to open and maintain a trading position in leveraged instruments.

In oil derivatives, margin ensures traders can cover potential losses. Margin requirements are determined by volatility, contract size, and risk exposure.

Effective margin management prevents forced liquidation and optimizes capital usage. Brokers monitor margins daily.

Position margin is critical for risk control, leverage strategy, and compliance with trading regulations.