Free Margin, Balance, Equity: What’s the Difference?

Ever open your trading platform and feel like your numbers don’t quite add up? Your balance says one thing, equity another, and free margin keeps shifting. Don’t worry! You’re not alone. These three values play a big role in how your account functions, especially when you're running trades manually or using a trade copier. Understanding how they work together can help you trade smarter, avoid margin calls, and get the most out of your trading setup.

Balance – Your Trading History

Your Balance is your account’s settled cash. It's what’s left after all closed trades. It includes your deposits, withdrawals, and profits or losses from trades you’ve already closed.

Example:
You deposit $1,000 and close a trade with $150 profit. Your balance now shows $1,150.

Think of it as...
Your account’s historical total, which means no open trades included.

Equity – Your Account’s Real-Time Value

Equity is your account’s live value. It’s your balance plus or minus the profit or loss from any currently open trades.

Example:
Balance = $1,150
Open trade is down $100 → Equity = $1,050
Open trade is up $200 → Equity = $1,350

Why it matters:
Equity gives you a real-time snapshot of your account health.

Free Margin – Your Trading Fuel

Free Margin is how much of your account is available to open new trades or support existing ones. It’s the leftover equity after accounting for the margin already used.

Free Margin = Equity – Used Margin

Example:
Your equity is $1,200 and your open trade is using $300 as margin. That leaves $900 in free margin.

Why it’s crucial:
Free margin is your buffer. If it runs too low, you risk a margin call... and no one wants that.

Trade Copier Smart Risk Tools That Work With You

As your reliable trade copier,  we copy Master orders based on your preferred settings. It's a big thing for us to provide you with options, so you can manage your risk effectively. Our Auto Risk and Fixed Leverage risk factors are built to work with your account’s actual conditions. That means our system considers your free margin, balance, and equity to calculate trade sizes and manage risk accordingly. So whether you're managing multiple accounts or just trying to grow one steadily, you have the flexibility and control you need without constant babysitting. Learn more about other risk factors here. 

Multicross Platform Trade Copier: MT5 → DXtrade, cTrader & More!

Tracking these numbers becomes even more important when you’re copying trades across platforms.
With Duplikium’s Multicross Platform Trade Copier, you can sync trades between MT4, MT5, cTrader, DXtrade, Tradovate, Fortex, and even platforms like TradingView, LMax, and FXCM Trading Station. Learn about the supported platforms here. Yes, you can mix and match brokers, platforms, and account types. Yes, you can mix live and demo accounts, too. 

When you understand how these work together,  and use tools like Duplikium’s smart risk settings, you set yourself up for smarter trades and better long-term success! Questions? Our team is happy to help!