What is free margin and how is it calculated?
Free margin refers to the amount of equity in a trading account that is available for opening new positions. It’s the part of your funds not tied up in existing trades, showing how much you can invest without risking your current positions. Monitoring your free margin is crucial for preventing margin calls or stop-outs and supporting your trading strategy.
To calculate free margin, you can use the following formula:
Free margin = equity - used margin
- Equity is the total funds of your account, including both your deposits, credits and any unrealized profits or losses from open positions.
- Used margin is the amount of margin currently allocated for your open positions.
