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When trading you are only required to put up a small amount of capital to open and maintain a position. this capital is known as MARGIN. for example if you want to buy $100000 worth of USDJPY, You don't need to put up the full amount, you only need a portion, like $3000. margin can be thought of as a good faith deposit or collateral that's needed to open a position and keep it.
Margin is NOT a fee or a transactional cost. margin is simply a portion of your funds that your forex broker sets aside from your account balance to keep your trade open and too ensure that you can cover the potential loss of a trade. once the trade is closed, the margin is freed or released back into your account and can now be usable again to open new trades.
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