What Does “Used Margin” Mean?
To understand Used Margin, you first need to know what Required Margin is. Required Margin is the amount set aside by your broker to open and maintain a single position.
Now, if you have multiple open positions, each will require its own Required Margin. The sum of all Required Margins across your open trades is called Used Margin.
In short, Used Margin is the total amount of your funds currently “locked up” to keep your active trades open. It cannot be used to open new trades.
Example:
Let’s say you deposit $1,000 and open these two positions:
- USD/JPY: 1 mini lot (10,000 units) @ 4% margin requirement
→ Required Margin = $400 - USD/CHF: 1 mini lot (10,000 units) @ 3% margin requirement
→ Required Margin = $300
Used Margin = $400 + $300 = $700
This means $700 is locked up to maintain both trades. Only the remaining $300 can be used to open new positions or absorb losses.
Recap:
- Used Margin is the total margin in use for all open positions.
- It is the sum of all Required Margins across active trades.
- Understanding Used Margin helps you manage available capital and avoid margin calls.