Lenders are hesitant to lend on foreign trade assets, and most lenders would either consider those accounts ineligible or will discourage their use as collateral as a matter of policy. (loanuniverse.com)
That means that they are taken out through the use of collateral as insurance. (badcreditloanservices.com)
The margin is placed on a margin funding account as collateral for the trade. (fxempire.com)