Free margin is the money still available to open new positions or absorb losses on current ones. It equals your equity minus the margin already locked in open trades. When free margin runs low, you are close to a margin call and cannot open new positions.
Forex Term
Free Margin
The account funds still available to open trades or absorb losses.
Example
Equity of $1,000 with $200 tied up as used margin leaves $800 of free margin.
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Trading Forex and CFDs involves a significant risk of loss.
Risk
Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.