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Forex Trading What is margin? free margin? and margin level?
avatar Lexie
Question by: Lexie - 13 Dec 2013, 00:02:31
What is margin? free margin? and margin level?
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Answers (1)
avatar user 1699
Answer by: Zoe19 - 13 Dec 2013, 00:36:21

Free margin = Equity – Margin. This free margin will increase or decrease depending on the profit (or loss) of your open position. Margin level (percentage) = (Equity/Margin) x 100 Equity = Balance + (-) profit or (loss). Depending on the movement of the price, your trade can be profitable at this moment but not the next second, so your equity amount will be fluctuating until you have liquidated your current trade.

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