What Is Free Margin in Exness? Its Importance in Forex Trading

In forex trading, free margin is a key concept that determines how much capital a trader has available to open new positions. It plays a crucial role in risk management and can influence a trader’s ability to sustain trades during market fluctuations.

At Exness, understanding free margin helps traders make informed decisions, ensuring they avoid margin calls and maximize their trading potential. Whether you’re a beginner or an experienced trader, knowing how free margin works can improve your overall trading strategy.

Definition of Free Margin

In Exness, free margin is the amount of money in your trading account that is not currently being used as collateral for open positions. It represents the funds available for opening new trades or covering potential losses.

Formula to Calculate Free Margin

Free Margin=Equity−Used Margin\text{Free Margin} = \text{Equity} – \text{Used Margin}Free Margin=Equity−Used Margin

Where:

Equity = Account balance + Unrealized profit/loss from open trades
Used Margin = The amount locked as collateral for open positions

Example Calculation

If a trader has:

Account Balance: $1,000
Open Trade Margin Requirement: $200
Unrealized Profit: $50

Then:

Equity=1,000+50=1,050\text{Equity} = 1,000 + 50 = 1,050Equity=1,000+50=1,050 Free Margin=1,050−200=850\text{Free Margin} = 1,050 – 200 = 850Free Margin=1,050−200=850

So, the free margin is $850, which means the trader can open new trades up to this amount.

Why Is Free Margin Important in Exness?

Free margin is a critical component of margin trading in Exness, as it determines how much capital you have available to open new trades and sustain existing ones. Managing free margin effectively can help traders avoid forced liquidations, maintain trading flexibility, and maximize opportunities in the forex market.

Here’s why free margin is essential for Exness traders:

Free margin represents the amount of funds that can be used to open additional positions without the need for further deposits.
A margin call occurs when your free margin becomes too low to sustain your open positions, with Exness sending warnings when your margin level drops below a certain threshold.
If free margin reaches zero, Exness will automatically start closing positions to prevent further losses, a process known as a margin stop-out.
With Exness offering high leverage (up to 1:Unlimited), monitoring free margin is crucial to avoid overexposure, as low free margin means less room for price fluctuations.
Only the free margin portion of your funds can be withdrawn; if most of your account balance is locked in used margin, you may not be able to withdraw funds until closing positions or depositing additional funds.

How to Maintain a Healthy Free Margin?

Use Stop-Loss Orders – Prevent excessive losses and protect your equity.
Avoid Over-Leveraging – Higher leverage increases risk and can quickly reduce free margin.
Monitor Margin Level – Keep an eye on your free margin percentage to ensure enough available funds.
Diversify Trades – Spread your risk across different assets instead of using all free margin on a single position.

How to Check Free Margin on Exness?

Monitoring your free margin is crucial to managing risk and ensuring you have enough funds available for new trades or to maintain existing ones. Exness provides multiple ways for traders to check their free margin across different platforms, including MetaTrader 4 (MT4), MetaTrader 5 (MT5), the Exness Web Terminal, and the Exness Mobile App.

Checking Free Margin on MetaTrader 4 (MT4) & MetaTrader 5 (MT5)

Log in to Your Trading Account on MT4 or MT5 on your desktop or mobile device using your Exness login credentials and selecting the correct trading server.
Open the Terminal Window by pressing CTRL + T or clicking on View > Terminal in the menu bar on Windows/Mac, or tapping the “Trade” tab at the bottom of the app on mobile.
Find the Free Margin Information in the “Trade” tab, where you’ll see Balance (total funds in your account), Equity (Balance + unrealized profits/losses), Margin (funds locked in open trades), Free Margin (available funds for new trades), and Margin Level (%) which is (Equity ÷ Used Margin) × 100.

Checking Free Margin on Exness Web Terminal

If you prefer trading via a web browser, follow these steps:

Log in to Exness Web Terminal by visiting Exness Web Terminal and logging in to your trading account.
Go to the Trading Dashboard by clicking on the “Trade” tab to access your trading account details.
Locate Free Margin which will be displayed alongside your Balance, Equity, and Used Margin.

Checking Free Margin on the Exness Mobile App

For traders on the go, the Exness app provides an easy way to track free margin.

Steps to Check Free Margin on the Exness Mobile App:

Download & Open the Exness App available on iOS and Android.
Log in to Your Account by entering your credentials and choosing your trading account.
Access the Account Overview by tapping on “Trade” to see your Balance, Equity, Margin, and Free Margin.

How to Increase Free Margin?

Deposit More Funds – Adding money to your account raises your equity, increasing free margin.
Close Winning Trades – If you close profitable positions, your equity rises.
Reduce Trade Sizes – Lowering your trade volume decreases margin usage.
Use Stop-Loss Orders – Helps control losses and maintain free margin.
Avoid Over-Leveraging – While Exness allows high leverage, using too much can quickly reduce free margin.

Conclusion

Free margin in Exness determines how much capital you have available for new trades and risk management. Keeping a healthy free margin prevents liquidation, helps manage leverage, and allows smooth trading.