How does free margin work in cryptocurrency trading?

1 answers

• Apr 30, 2022 · 3 years ago
  Free margin is a term commonly used in cryptocurrency trading to describe the amount of funds available in your trading account that can be used to open new positions. It is calculated by subtracting the used margin (the amount of funds tied up in open positions) from your account balance. Free margin is important because it determines your ability to take advantage of new trading opportunities. If your free margin is low, it means you have less available funds to open new trades. On the other hand, if your free margin is high, you have more flexibility to open new positions. It's essential to monitor your free margin and manage your positions accordingly to avoid margin calls and potential liquidation of your trades.
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