Free margin

Free margin is the capital still available to open positions or absorb losses: equity minus used margin.

On MetaTrader, the “free margin” line is calculated like this: equity (balance plus or minus open profits and losses) minus the margin held by your open positions.

It falls when a position loses and rises when it gains. If it turns negative, you can no longer open trades, and your margin level moves closer to the margin call and then the stop out.

Plenty of free margin is not a goal in itself, but shrinking free margin is a warning sign: your exposure is too large for your capital. Keep an eye on it whenever you hold several positions at once.

The full lessonMargin, margin call and stop out: what happens when your position losesUsed margin, free margin, margin level, margin call and stop out explained step by step, with a worked EUR/USD example to help you avoid being liquidated.