What is Margin? What does 6:1 Margin mean?

Margin is the ability to trade using borrowed/leveraged funds. 6:1 margin means that once your account is funded with the $500 minimum or above you will be allowed to trade 6 times that amount (example:  $500 in equity equals $3,000 in buying power). 2:1 margin means that you are only allowed the use of 2 times your current equity. Margin is calculated based on a client’s current equity amount.