A margin in the Futures/Forex market is the amount of funds an investor must put up to start trading the particular position(s). These funds are usually a fraction of the underlying asset value, and help ensure that both parties fulfil their obligations. Both buyers and sellers must put up payments. Trading with margin creates a 'leveraged effect' that allows an investor to use a small amount of money to make an investment of greater value , therefore even a small price change can result in relatively larger profits or losses.