What's Difference Between Equity & Margin in Indices Trading?
Equity is the total amount of capital in a trader's account while margin is amount of money required by your 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 stock trades and because there are no open stock 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 trades is known as free margin.
To Learn and Know More about Leverage & Margin - How to Read the Topics Below:
Leverage & Margin Explained
What's a Trade Plan? - Written Plan Example Template
Alternatives: Automated EA Trading or Copy and Paste Signals
