what is free credit interest and margin
Free margin is the difference of your account equity and the open positionsâ required margin: Free Margin = Equity â Required Margin. When you have no positions, no money from your account is used as the required margin. Therefore, all the money you have in your account is free. As long as you have no positions, your account equity and free margin are the same as your account balance. Letâs say you have a $10,000 account and you have some open positions with the total required margin of $900 and your positions are $400 in profit.