Formula
Free margin = equity − used margin
Free margin goes up when open trades are in profit and down when they are losing. When free margin reaches zero you cannot open new trades, and your existing positions are at risk of a margin call.
Forex glossary
What Is Free margin in Forex Trading?
Definition
The money in your trading account that is not tied up as margin and is available to open new positions or absorb losses.
Updated
SaveRelated terms
- Margin
- The amount of your own money a broker sets aside as a deposit to keep a leveraged position open.
- Equity
- Your account balance plus or minus the floating profit or loss on all open trades. It is what your account would be worth if you closed everything now.
- Margin call
- A warning from your broker that your account equity has fallen too low to support your open positions.