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Costs & risk

Free margin

Free margin is the part of your equity not used as margin by open positions: equity minus used margin. It is what is available to open new positions and to absorb losses on open ones.

Also called: available margin, usable margin

Hypothetical example

Hypothetically, your equity is $1,000 and open positions use $500 of margin: your free margin is $500. If the positions lose $200, equity falls to $800 and free margin to $300.

Used in these guides

Costs & risk8 min read
Margin call and stop out: how they work
How margin level is calculated, when a margin call or a stop out happens, and what each one does to your open positions.

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