Free Margin refers to the amount of USDT available in your futures trading wallet. Such free margin can be used to enter into new positions out of the ten trading pairs available on Density Exchange Platform. Free Margin is the difference between the value of your current holdings and the already utilized margin used to enter into existing positions.
Alex has deposited USDT 1,000 into her USDT Wallet as a first-time user on Density Exchange. Accordingly, her current free margin balance is USDT 1,000. She expects a rise in Bitcoin and uses USDT 400 out of the free margin balance to take a long (buy) position of USDT 2000 (Taking on leverage of 5x). After this transaction, her free margin balance will fall to USDT 600.
Free Margin balance also differs from the Total Margin Balance where Total Margin Balance is the Amount deposited less Realised PnL.
You cannot enter into any new positions if your free margin is zero or less than zero
Hence, we can say that Free margin is the money available (the amount that has not been locked up) with which one can enter into new positions without depositing any additional funds into the futures trading wallet.
You can check your Free margin balance by clicking the Portfolio Tab. The Free Margin balance is in terms of USDT. The Current status table displays your Free margin balance.
Alternatively, you can also see your free margin balance by visiting your wallet balance tab from the right in the top navbar. INR wallet is selected by default. Click the USDT wallet to view the same. You will be able to see the Free margin balance along with the Total margin balance and Realised 24 hr PnL.