Free Margin is the portion of your collateral in a Margin account that is not currently used for open positions. It’s also called Usable Margin, because it’s the amount available to open new trades or to absorb potential losses on your existing positions.
⚡ How Free Margin Works
Free Margin shows how much of your collateral is available for trading.
It indicates how much your positions can move against you before a Margin Call or Stop-Out is triggered.
When Free Margin reaches 0, you will receive a Margin Call, warning you that your positions are at risk.
Proper monitoring of Free Margin is key to managing risk in leveraged trading.
FAQs
💡 What is Free Margin?
Free Margin is the collateral not currently used for open positions and is available to open new trades or absorb losses.
📊 What happens if Free Margin reaches 0?
When Free Margin hits 0, a Margin Call is triggered, alerting you that your positions may be liquidated if the market moves further against you.
💸 Can I open new positions with Free Margin?
Yes. Free Margin represents the usable portion of your collateral, which can be allocated to new trades.
📈 How is Free Margin related to risk?
Free Margin reflects your cushion against losses. The lower it is, the closer you are to a Margin Call or Stop-Out, so careful monitoring is essential.