Free margin in forex trading refers to the amount of equity in a trader’s account that is available for opening new trades. It is calculated as the difference between the trader’s equity and the margin used for their open positions.
In other words, free margin represents the amount of money in a trader’s account that is not currently being used as collateral for any open trades. This means that a trader can use their free margin to open new trades or to maintain existing ones.
It’s important for traders to monitor their free margin levels and manage their risk appropriately, as low free margin levels can indicate that a trader is taking on too much risk and may be in danger of a margin call. On the other hand, a high free margin level can indicate that a trader has not utilized their available capital to the fullest, which may be an opportunity for the trader to increase their exposure.