In the dynamic world of foreign exchange (forex) trading, it is essential to grasp key concepts that play a significant role in managing your trading account effectively. One such concept is the notion of free margin. In this article, we will explore the concept of free margin, its importance, and how it affects your forex trading experience.
What is Free Margin? Free margin is the amount of funds available in your trading account that can be used to open new positions or absorb potential losses. It is the difference between your account equity and the margin required to maintain open positions. Essentially, free margin represents the capital accessible for further trading activities.