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What Is Free Margin?

Free margin is the money in your account available to open new trades or absorb losses on open ones; it equals equity minus used margin.

Explained

Free margin moves with every tick of your open trades, because equity moves. As it nears zero you cannot open new trades, and any further loss brings the account closer to a margin call.

Example

Example with made-up numbersEquity is 2,000 dollars and used margin 300 dollars, so free margin is 2,000 − 300 = 1,700 dollars.

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Educational content, not investment advice.