How to Understand Margin & Equity on Forex.Com 2025?
0Understanding margin and equity on Forex.com in 2025 is crucial for managing your trading account and risk effectively. Margin is the amount of money required to open and maintain a position, acting as a good faith deposit, while equity represents your account balance including unrealized profits or losses from open trades. For example, if you have $1,000 in your account and open a position that requires $100 margin, your available margin decreases accordingly. As market prices fluctuate, your equity changes in real time, reflecting both your starting balance and any gains or losses on open positions. Monitoring margin levels and equity ensures you avoid margin calls, which happen if your equity falls below the required margin, forcing the broker to close positions to protect the account. Forex.com provides margin call alerts and margin closeout protections to help manage this risk. Knowing the difference and relationship between margin and equity helps traders allocate funds wisely, use leverage safely, and maintain enough free margin to open new trades or withstand market volatility.
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