Three useful terms
Used margin is collateral allocated to open positions. Equity reflects account value including floating profit or loss. Free margin is commonly equity minus used margin; platform and account rules determine the precise calculation.
Why margin changes
Opening positions uses margin. Market movement, conversion rates and revised requirements can change available capacity. Margin requirements may vary by product and position size.
Margin level
A common display is equity divided by used margin, multiplied by 100. For example, $500 equity and $100 used margin gives 500%. When no margin is used, the platform may show a different or empty value.
Before placing an order
Check required margin and the account’s stop-out rules. Leave room for adverse movement and costs. A platform accepting an order does not mean that the trade is affordable or suitable.
Frequently asked
Is margin a trading fee?
Margin is generally collateral; spread, commission and financing are separate costs.
Further reading
MetaTrader 5: Trading operations ↗External educational references do not imply endorsement, affiliation or regulation of QB Capitals.
Leveraged forex and CFDs involve significant risk of loss. Demo results do not predict live performance. Understand the risks ↗