What is free margin?

[Upoctin]

Margin and free margin are connected to each other. What will appear at the margin level actually means that your free margin level cannot go below the margin level. If the free margin goes to your margin level then your trade will close automatically. The trade with the highest loss will be closed first and will continue to close continuously unless the free margin level is equalized.

[Vaabum]

Before you start working in this niche, I advise you to get high-quality training. This aspect is very important for a trader's success.

[moneyrig]

On 4/21/2021 at 11:43 AM, Upoctin said:

Margin and free margin are connected to each other. What will appear at the margin level actually means that your free margin level cannot go below the margin level. If the free margin goes to your margin level then your trade will close automatically. The trade with the highest loss will be closed first and will continue to close continuously unless the free margin level is equalized.

You are correct. You should also study how leverage applies to this situation. People use high leverage to increase the margin and trade more, but this also reduces your free margin in the sense that you are more likely to hit a margin cut off when you use high leverage. The only broker that I have seen to give you free credit support when you are about to hit a margin cut off is Forexchief. The broker gives free credit to support your trade till you make a deposit, so that you don't lose all your money.

[Vaabum]

To resolve such issues, I advise you to first work on a demo account. As for me, this solves such initial questions even before the work process.

[bigxy]

Agreed as the demo account is very helpful for new traders to learn forex trading process much easier than any other learning resources.

[Upoctin]

Margin is the amount of money that a trader must invest in order to open a trade. To open a position in forex on margin, you only need to pay a percentage of the full position value. This is not a transaction cost.

[Vaabum]

Now I think that many do not have questions about this.

[Dora Wi]

This is a very good explanation, thanks for posting it!

[Vaabum]

Indeed, this aspect is quite important and useful for work. At least, so far I like this option.

[FXOpen Trader]

On 1/25/2022 at 8:48 AM, Upoctin said:

Margin is the amount of money that a trader must invest in order to open a trade. To open a position in forex on margin, you only need to pay a percentage of the full position value. This is not a transaction cost.

We will need to know and understand about the use of the Margins in doing our trades into the markets.

[FXOpen Trader]

On 1/25/2022 at 8:48 AM, Upoctin said:

Margin is the amount of money that a trader must invest in order to open a trade. To open a position in forex on margin, you only need to pay a percentage of the full position value. This is not a transaction cost.

We will need to know and understand about the use of the Margins in doing our trades into the markets.

[Vaabum]

Guys, my advice is to find out about this before investing in the main account. This is extremely important now.

[FXOpen Trader]

On 3/10/2022 at 3:46 PM, Vaabum said:

Guys, my advice is to find out about this before investing in the main account. This is extremely important now.

We should understand that we have to keep sufficient amount of free margin in our trading account.

[Vaabum]

I advise you to pay attention to the fact that with the right approach, this can be quite the right tactic.