Basics
Free Margin
The amount available to open new positions.
Full Definition
Free margin is the amount of money in your trading account that is available to open new positions. It's calculated as equity minus used margin. When free margin reaches zero, you cannot open new trades. Monitoring free margin helps prevent margin calls and ensures you have capital available for new opportunities.
Example
Your equity is $10,000 and you have $3,000 margin used for open positions. Your free margin is $7,000 ($10,000 - $3,000). You can use this $7,000 to open additional trades.
Formula
Free Margin = Equity - Used MarginRelated Terms
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