Margin is an account mechanism designed to reserve a portion of capital as collateral for an open position — the deposit the platform holds while the position runs.

Used margin rises with every open position; free margin is what remains available for new positions and for absorbing floating losses. When floating losses consume free margin past the platform’s margin-call and stop-out thresholds, positions are closed automatically — but in an evaluation, the equity-based daily loss limit will almost always trigger before a stop-out does. Margin math matters most for traders running multiple simultaneous positions, where correlated exposure can consume free margin faster than any single trade suggests.