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Risk

Free margin — definition & meaning

The money in your account still available to open new trades.

Free margin is your equity minus the margin currently tied up in open positions. It is the buffer available to absorb losses and to open new trades.

When free margin runs low, you are close to a margin call. Watching free margin is one of the simplest ways to see how much risk your account can still take.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

Related terms

Margin
The deposit a broker holds to keep a leveraged position open.
Equity
Your account balance adjusted for the profit or loss on open trades.
Margin call
A broker warning that your equity is too low to support open trades.
Balance
The cash in your account from closed trades, before open P&L.
Leverage
Borrowed exposure that lets you control a large position with a small deposit.
Stop-loss
A preset order that closes a losing trade to cap your loss.

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