Available Balance

The available balance is the portion of the total account balance that can be withdrawn or used to open new trades. It is different from the total balance because it excludes any funds that are currently being used as collateral for open positions.

When a trader has active trades, the available balance will be lower than the total balance. This reflects the reality that some of the money is locked in existing exposures.

Monitoring the available balance is crucial for cash management and planning future trades. It gives a clear picture of how much liquid capital is actually on hand.

If a trader needs to withdraw funds, they can only do so up to the amount of their available balance. Understanding the difference between total balance and available balance prevents confusion and helps in planning account withdrawals or deposits.

It is the liquid part of the portfolio that remains at the trader's disposal. Keeping track of this ensures that you are not planning trades with money that is already committed.