---
title: "Free margin - Meaning & GFN's Figure - Get Funded Now"
description: "Equity minus the margin currently committed to open positions. It is what remains available to open new trades or to absorb floating losses on the ones…"
url: "https://getfundednow.com/glossary/free-margin"
language: "en"
last_modified: "2026-09-22"
publisher: "Get Funded Now (getfundednow.com)"
translations:
  es: "https://getfundednow.com/es/glossary/free-margin"
  pt-BR: "https://getfundednow.com/pt-br/glossary/free-margin"
  fr: "https://getfundednow.com/fr/glossary/free-margin"
  it: "https://getfundednow.com/it/glossary/free-margin"
  de: "https://getfundednow.com/de/glossary/free-margin"
disclosure: "All trading at Get Funded Now is simulated. 'Funded' means a simulated or virtual account; GFN is not a broker and does not hold client funds."
---

Trading mechanics

# Free margin

Equity minus the margin currently committed to open positions. It is what remains available to open new trades or to absorb floating losses on the ones already running.

GFN’s figure

On a GFN account free margin is reduced by floating losses, and those same floating losses count toward the daily loss limit - 3% on Instant, 5% on the 1 Step and 2 Step.

In detail

## Free margin, explained

Free margin falls for two reasons: opening more positions, and existing positions moving against you. The second is the one that catches traders out, because no new trade was placed.

On an account with an equity-based risk limit, free margin and the drawdown buffer move together - both are eroded by the same floating loss.

[The rule in full →](https://getfundednow.com/rules/margin-and-lot-size) · [Rules handbook](https://getfundednow.com/rules) · [More trading mechanics](https://getfundednow.com/glossary/category/mechanics)

Related

## Terms that come with it

Most rules only make sense next to the ones they interact with. These are the entries this one depends on.

- [Margin](https://getfundednow.com/glossary/margin) - The portion of account equity set aside to hold an open position. It is a deposit against the position rather than a cost, and it is returned to free margin when the position closes.
- [Margin call](https://getfundednow.com/glossary/margin-call) - A warning issued when equity falls to a set percentage of the margin required for open positions. It signals that the account is close to being unable to support the trades it holds.
- [Stop-out](https://getfundednow.com/glossary/stop-out) - The automatic closing of positions when equity falls below the level needed to maintain them. On a prop account the phrase is also used loosely for hitting the maximum drawdown floor.
- [Equity-based drawdown](https://getfundednow.com/glossary/equity-based-drawdown) - A drawdown measured against live account equity, which includes the unrealised profit and loss of every open position. The breach level can be touched while a trade is still running, before anything is closed.
- [Buffer](https://getfundednow.com/glossary/buffer) - The distance between current equity and the nearest breach level. It is the only figure that tells you how much risk is available right now, and it shrinks with commission and floating losses as well as with realised ones.

Also governed by [/rules/margin-and-lot-size](https://getfundednow.com/rules/margin-and-lot-size)

[Lot](https://getfundednow.com/glossary/lot) · [Standard lot](https://getfundednow.com/glossary/standard-lot) · [Position size](https://getfundednow.com/glossary/position-size)

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Source: https://getfundednow.com/glossary/free-margin
Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt