What's Difference Between Equity and Margin in Forex?
Equity is the total amount of capital in a forex trader's account while margin is amount of money required by your forex broker so that to allow you to continue trading with the borrowed amount that you have borrowed after using leverage.
If there are no trades then the equity is equal to free margin - this free margin is the amount available for opening new forex trades and because there are no open forex trades then this free margin is equal to the equity in the trader's account.
When a trader opens new trade transactions using part of their equity then the margin used to open trades is known as used margin and the part of their equity that has not been used to open forex trades is known as free margin.
To Learn More about Forex Leverage and Margin - Read the Topics Below:
Forex Leverage & Margin Discussed
