Glossary - M

MARGIN
Funds required as an initial outlay for a leveraged trade. Also known as deposit.
 
MARGIN COVER
The margin needed in order to cover (open) a new position.
 
MARGIN CALL
When Variation Margin is immediately due and payable by you in order to return your account balance to a positive figure.
 
MARKET MAKER
A market maker is a company, or an individual, that quotes both a buy and a sell price in a financial instrument, hoping to make a profit on the bid-offer spread.
 
MAXIMAL DRAWDOWN
Is the highest difference between one of local upper extremums of the balance graph and the lower extremums: Maximal Draw Down = Max of (Maximal Peak - next Minimal Peak)
 
MONETARY POLICY
This is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability.
 
MORTGAGE BACKED SECURITY (MBS)
Typically a bond of which the regular interest payments are secured by a collection of mortgage payments on a number of properties.
 
MT4
MT4 is an electronic trading platform widely used by online retail foreign exchange and CFD traders.