Free margin is the amount of funds in your account that is available to open new positions or withstand losses on existing positions. It represents the difference between your equity and the used margin:
Free Margin = Equity − Used Margin
- Equity: Your account balance plus or minus any unrealised profits or losses from open positions.
- Used Margin: The total margin required to maintain your current open positions.
A higher free margin gives you more flexibility to open new trades and reduces the risk of a margin call or stop-out, while a low free margin indicates that your account is close to the required margin threshold.
