What is Free Margin?
Updated October 17, 2026
Free margin is the money in your account that isn't tied up in open trades.
Free margin is equity minus used margin. It's your cushion.
When trades go against you, free margin shrinks. When it hits zero you can't open anything new.
Keeping plenty of free margin means a bad move won't trigger a margin call right away.
Example
Equity is $1,000 and used margin is $200, so free margin is $800.
Questions people ask
Why is my free margin negative?
Your open losses are bigger than your equity can cover, which usually means a stop out is close.
Does a bot watch free margin?
Good ones have limits on total exposure, but you should still check it yourself.
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