Forex margin trading is when you trade currencies backed by a fractional deposit of money. The deposit serves as collateral to your account. The margin is measured in percentages from the total value of the position.
For example a 1% margin of a $1,000,000 USD/JPY position is $10,000. What this means is that in order for somebody to buy $1,000,000 of USD/JPY, you would need to put down $10,000 or a 1% margin.
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