Available Margin

Available margin is the portion of a traders account equity that is currently unencumbered and can be used to open new positions or maintain existing ones. It is calculated by taking the total account equity and subtracting the initial margin required for all open positions.

In cryptocurrency derivatives, this value fluctuates in real-time based on the mark-to-market value of open trades. If the market moves against a position, the available margin decreases as unrealized losses consume the equity.

Conversely, profitable positions increase equity and therefore increase available margin. Traders must monitor this metric closely to avoid liquidation, which occurs when the available margin drops to zero or below the maintenance requirement.

It serves as a vital risk management tool, dictating the capacity for further leverage. Understanding this allows traders to manage their exposure effectively in volatile environments.

It is essentially the remaining purchasing power within a margin-enabled account.