How does free margin work in the context of digital currency trading?

4 answers

• Fahima FahimJun 28, 2024 · 2 years ago
  Sure! Free margin is the amount of funds in your trading account that is available for opening new positions. It is calculated by subtracting the margin used for open positions from your account balance. Free margin is important because it determines whether you have enough funds to open new trades or if you need to close existing positions to free up margin. It is also used to calculate the margin level, which is the ratio of your equity to your used margin. When the margin level falls below a certain threshold, usually set by the broker, it can trigger margin calls or stop out your positions.
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• meryll koneAug 27, 2022 · 3 years ago
  Free margin is like the available balance in your trading account. It's the money you have left after taking into account the margin required for your open positions. Let's say you have $10,000 in your account and you open a position that requires $2,000 in margin. Your free margin would be $8,000. This is the amount you can use to open new trades. If your free margin drops too low, you may receive a margin call from your broker, asking you to either deposit more funds or close some of your positions to increase your free margin.
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• Hassan Khan KhalilAug 29, 2025 · 6 months ago
  In the context of digital currency trading, free margin works the same way as in any other type of trading. It represents the funds available in your account that are not tied up in open positions. This is important because it determines your ability to take advantage of new trading opportunities. For example, if you have a large amount of free margin, you can open multiple positions simultaneously. However, if your free margin is low, you may need to close some positions to free up margin before you can open new trades. It's always a good idea to monitor your free margin closely to ensure you have enough funds to support your trading strategy.
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• Shubham PrasadJan 11, 2026 · a month ago
  At BYDFi, we understand the importance of free margin in digital currency trading. Free margin allows traders to have flexibility in their trading strategies and take advantage of market opportunities. It is crucial to manage your free margin effectively to avoid margin calls and potential liquidation of your positions. Our platform provides real-time information on your free margin, allowing you to make informed trading decisions. We also offer risk management tools to help you monitor and control your margin levels. Remember, maintaining a healthy free margin is essential for successful trading.
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