Closing positions and free margin

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Hi, very new to this and require some info.

How does the free margin operate when closing positions ? I have closed positions that are losing and the free margin then goes up.

I have also closed positions in profit and the free margin barely moves, if at all, then sometimes it increases !!

I dont know the reasons for this, could someone please explain ?

Thanks

 
RScott1872:

Hi, very new to this and require some info.

How does the free margin operate when closing positions ? I have closed positions that are losing and the free margin then goes up.

I have also closed positions in profit and the free margin barely moves, if at all, then sometimes it increases !!

I dont know the reasons for this, could someone please explain ?

Thanks

Hey mate,

Free margin is basically the amount of money you have to open new positions. So even when you suffer a losing trade, it goes up, because of the closing of the trade, you free more currency for future trades, although you take a loss.Same with profit.

I really hope i explained it in an understandable manner.

 
Stanislav Ivanov:

Hey mate,

Free margin is basically the amount of money you have to open new positions. So even when you suffer a losing trade, it goes up, because of the closing of the trade, you free more currency for future trades, although you take a loss.Same with profit.

I really hope i explained it in an understandable manner.

Thanks for replying, and I get what you're are saying, but I have closed profitable positions and the free margin doesn't appear to free up any more money.

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