What's Difference Between Equity & Margin in Indices Trading?
Equity is the total amount of capital in a indices trader's account while margin is amount of money required by your indices broker so that to allow you to continue trading with the borrowed amount that you have borrowed after using stock indices trading leverage.
If there are no trades then the equity is equal to free margin - this free margin is the amount available for opening new stock indices trades and because there are no open stock indices 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 stock indices trades is known as free margin.
To Learn & Know More about Indices Leverage & Margin - How to Read the Topics Below:
Indices Leverage and Margin Explained
