Available Margin vs. Available Funds: Key Differences Explained

2023-05-31
Summary:

Available margin refers to the margin balance in a trader's exchange account that can be used to open or maintain existing positions. Available funds refer to the total balance of funds available for trading in a trader's exchange account, including available margin, realized gains and losses, and other available funds.

Available margin and available funds are two different concepts.

available margin

The available margin refers to the margin balance available for trading in your exchange account, which means that in addition to the frozen portion of the margin you have already paid, it can also be used for new or additional positions. When you make a transaction, the system will automatically deduct the corresponding margin amount from the available margin. Meanwhile, when you close or reduce your position, the system will return the released margin to your available margin, making it available.


Available funds refer to the total balance of funds available for trading in your exchange account, including available margin, realized gains and losses, and other available funds. When you trade, the system will calculate the profit and loss of your position based on the current market situation and add or subtract the profit or loss amount from your available funds. Therefore, the available funds can be used for operations such as opening new positions, increasing positions, and withdrawing funds.


Overall, available margin and available funds are funds available for trading in exchange accounts, but their meanings and calculation methods are slightly different.


The difference between available margin and available funds lies in their different scopes of use. Available margin refers to the portion of the paid margin that, in addition to the frozen portion, can also be used for new or additional positions. The available funds include available margin, realized profits and losses, and other available funds, which can be used for operations such as opening new positions, increasing positions, and withdrawing funds.


In other words, the available margin can only be used for trading operations, while the available funds can be used for various operations, including trading and the withdrawal of funds. When conducting transactions, it is necessary to maintain a sufficient available margin balance to cope with market fluctuations and trading risks.

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