DESCRIPTION: In its simplest definition, Free Margin is the money in a trading account that is available for trading.
POSSIBLE REASON: managing your Free Margin is crucial to your trading success. It guarantees that you have enough capital to manage your existing trades effectively and open new ones. It also helps you manage your risk and avoid margin calls.
RESOLUTION STEPS:
For Financial MT5 Accounts:
- Calculate your Equity by subtracting or adding your profit/loss to your Balance
- Subtract the used margin of your open positions from your Equity (Free Margin = Equity – Margin)
For Standard MT5 accounts (real/demo):
- If there is a negative profit/loss from open positions, the Free Margin is calculated by subtracting the Margin from the Equity. (Free Margin = Equity – Margin)
- If there is a positive profit/loss from open positions, the Free Margin is determined by subtracting the Margin from the Balance. (Free Margin = Balance – Margin)
For further check refer to https://community.deriv.com/t/calculation-of-the-free-margin-for-mt5-account/31298