Free Margin Free margin is the portion of your account equity available to open new positions or absorb losses.
What it means
Free margin is the portion of your account equity available to open new positions or absorb losses.
Why it matters in live markets
In real markets, conditions like liquidity, volatility, and event risk can change quickly. That can affect quoted prices, spreads, and how orders fill. Understanding this term helps you interpret what you see on the platform and avoid incorrect assumptions when the market is moving fast.
Key points
- Margin metrics change as equity and open positions change.
- Higher leverage increases both potential gains and potential losses.
- Volatility and gaps can move accounts quickly toward risk thresholds.
Example: A simple way to check your understanding is to apply the definition to a live quote, then ask how it affects cost, risk, or execution.
Related glossary terms
Margin, Margin Level, Margin Call, Stop Out, Leverage
Where you will see it
You will usually encounter this concept in platform quotes, order tickets, trade history, and market commentary. If you are comparing conditions across instruments, check product specifications and note that behaviour can differ by market and session.