When people start copy trading, they often focus only on profits and master traders. But one of the most important concepts behind successful trading is margin in trading. Without understanding margin, beginners can face unnecessary risks and even lose their capital quickly.
In this article, we’ll explain the role of margin in copy trading, how margin works in the stock market, and how platforms like Combiz help traders manage it smartly using advanced copy trading software and a powerful copy trading app.
Margin in trading is the amount of money you must keep in your account as collateral to open and maintain a leveraged trade. The term "margin" refers to the practice of making a small initial payment, which allows you to control a complete position.
If you want to open a ₹100,000 position with 5x leverage from your broker, you only need ₹20,000 as margin. The system enables traders to manage bigger positions by using less money.
Brokers in the stock market provide intraday margin and futures margin together with various leveraged products for trading purposes. Your trading performance will improve when you select the best margin broker for your needs.
In copy trading, margin plays an even more important role.
When you copy a lead trader, your account automatically mirrors their trades. If the master trader uses leverage, your account must also have enough margin to replicate those positions.
Margin in copy trading acts as:
Without sufficient margin, copied trades may fail to execute.
One key role of margin in trading is enabling proportional copying.
With Combiz copy trading software, trades are scaled based on your account size. For example:
This keeps risk balanced and prevents overexposure.
Some platforms use fixed margin modes, where a fixed amount is used per trade. However, proportional scaling—as supported by Combiz—is generally safer for beginners.
Margin is not just about leverage—it is also a protection system.
Two important concepts:
1. Margin Level
This is the ratio between your equity and used margin. A healthy margin level means your account is safe.
2. Margin Call & Stop-Out
If losses increase and free margin drops too low:
This is why monitoring margin in stock market trading is critical, especially when using copy trading apps.
There are generally two margin approaches in leveraged markets:
Isolated Margin
Each trade uses separate margin. If one trade fails, only that specific margin is affected.
Cross Margin
All trades share a total margin balance. This offers flexibility but increases overall portfolio risk.
Combiz helps users manage risk efficiently by allowing better capital control within its copy trading app environment.
One of the biggest reasons beginners fail in copy trading is insufficient margin.
If your free margin is too low:
If the lead trader uses high-frequency trading or multiple positions, your account must have enough margin buffer to support that strategy.
The use of margin increases both profits and losses to a greater extent.
Key risks include:
This is why choosing the best margin broker and using reliable copy trading software like Combiz becomes crucial.
To use margin safely:
Combiz provides built-in risk management tools that allow beginners to control leverage exposure and maintain healthy margin levels.
Understanding the role of margin in trading is essential for anyone entering copy trading. Margin enables leverage, supports trade replication, and acts as a safety mechanism—but it also increases risk if misused.
In the margin in the stock market, selecting the best margin broker matters. But equally important is using a smart platform that manages margin efficiently.
With Combiz copy trading software and its advanced copy trading app, beginners can copy professional traders while maintaining proper margin control and risk management.