The amount of cash available in your trading account
Balance
Sum of Required Margin from ALL open positions
Used Margin
The difference between Equity and Used Margin
Free Margin
This fluctuates with current market prices if you have open positions
Unrealized P/L
Current value of your trading account. If you have trades open it is Account Balance + Floating P/L
Equity
Equity / Used Margin) x 100%
Margin Level
The procedure of moving open positions from one trading day to another
Rollover
This fee is either paid or charged to you at the end of each trading day if you keep your trade open overnight
Swap
This happens when you close a trade
Realized P/L
A deposit needed to open a position and keep it open
Margin
Value of the full position size
Notional Value
An amount needed to open a position, expressed as a percentage of the notional value
Margin Requirement
The amount of money that is set aside when you open a position
Required Margin
Most trading platforms will not allow you to open new trades if
The margin level is 100% or less
When your floating losses are greater than your Used Margin
Margin Call
A threshold that will trigger a Margin Call
Margin Call Level
This is the specific level at which a broker would be forced to close your position
Stop Out Level
The act of closing out your positions
Stop out
What if your broker operates with a Margin Call only?
Your positions will be closed automatically at the Margin Call
What if your broker operates with both Margin Call and Stop Out Level?
The Margin Call will be a warning only, and you will not be able to open new positions. If you drop to the Stop Out Level, all positions will automatically be closed.
