The amount of your account equity that is available for opening new positions or withstanding further losses on current trades. Free margin = Equity – Used Margin. It’s essentially your unused buying power. For instance, if you have $1,000 equity and $200 is tied up as margin for open trades, your free margin is $800. Free Margin goes up when open trades are in profit (equity rises) and down when they are in loss. If free margin drops to zero, you cannot open new trades and are close to a margin call. In simple terms, free margin is “the equity in your account NOT currently tied up for margin on open positions” – i.e., funds available to trade. Robots should monitor free margin, especially if they open multiple trades, to avoid over-leveraging the account.

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