When trading with the right broker, you can take all the information you need right from the platform. In fact, your financial summary can give you a lot of valuable notions, that you can use to improve your Risk Management strategies. It can be your friend when in need, or – if unattended to – it can become your worst enemy.
Every broker should be transparent when it comes to your financial details. Once you identify this section in your account you’ll have to get familiar with the terminology. Once you know the ‘whats’ you’ll be better prepared to enter the markets, since these notions can be the starting point of your Risk Management strategies.
The following should be found in every trading account, so make sure to look them up and keep an eye on them as much as possible.

Available Margin (also known as Free Margin): represents the funds left in your account, available to open new transactions with. It does not reflect the amount using the leverage. It doesn’t include the used margin, but it includes your account’s profits and losses.
Tip: Ask your Account Manager to give you a practical example on your demo account, while you have opened transaction(s).
Used Margin: The margin used in your current opened deals (collateral for your net exposure – which will be subtracted from your account’s balance in case the transaction closes on 0 or against you).
Margin Utilization: The Equity used in your account’s opened deals, expressed in percentage. Always remember: the larger the margin utilization, the larger the risk of your transactions to close due to low equity. When using the maximum leverage for your balance you’ll see a reading of 100% Margin Utilization.
Tip: Check with your Account Manager which is their Stop Out level for best Risk Management practices, and avoid having your transactions closed due to insufficient balance.
Equity: The net value of your account, including the profits or losses from any open positions.
Balance: The net value of your account, before opening your current transaction(s). It gets updated every time you close a deal.
Tip: Ask your Account Manager to explain the difference between Account Equity and Balance, in your trading account.
Exposure Coverage: The percentage of how much the markets can move against you in order to have your transactions closed, causing you to lose. Some brokers allow you to set the levels for your Exposure Coverage notification.
Tips: Make sure to check with your broker which is your exposure coverage and ask him to help you identify the optimal levels, based on your trading experience and market flexibility.
Maintenance Margin: The minimum amount of funds necessary to open a position.
Net Exposure: Represents the percentage difference between a trader’s long and short transactions. Based on the net exposure a lot of traders use it for their strategies, by choosing between net log, net short and market neutral styles.
Tip: Ask your Account Manager to help you identify the right exposure strategy, based on the assets and market expectations you have. As he won’t be allowed to give you investment advice, try to give him as much information as possible, regarding the transactions that you might want to open as: the asset, direction, margin usage etc.
Maximum Exposure: The maximum amount you can invest using the leverage, regardless of your invested capital.
Tip: Many traders base their Risk Management strategies starting from their Maximum Exposure, as it allows them to lower their risks, by diversifying their portfolios which can lower their exposure. What could your Account Manager tell you about this strategy?
 






When trading with the right broker, you can take all the information you need right from the platform. In fact, your financial summary can give you a lot of valuable notions, that you can use to improve your Risk Management strategies. It can be your friend when in need, or – if unattended to – it can become your worst enemy.
Every broker should be transparent when it comes to your financial details. Once you identify this section in your account you’ll have to get familiar with the terminology. Once you know the ‘whats’ you’ll be better prepared to enter the markets, since these notions can be the starting point of your Risk Management strategies.
The following should be found in every trading account, so make sure to look them up and keep an eye on them as much as possible.

Available Margin (also known as Free Margin): represents the funds left in your account, available to open new transactions with. It does not reflect the amount using the leverage. It doesn’t include the used margin, but it includes your account’s profits and losses.
Tip: Ask your Account Manager to give you a practical example on your demo account, while you have opened transaction(s).
Used Margin: The margin used in your current opened deals (collateral for your net exposure – which will be subtracted from your account’s balance in case the transaction closes on 0 or against you).
Margin Utilization: The Equity used in your account’s opened deals, expressed in percentage. Always remember: the larger the margin utilization, the larger the risk of your transactions to close due to low equity. When using the maximum leverage for your balance you’ll see a reading of 100% Margin Utilization.
Tip: Check with your Account Manager which is their Stop Out level for best Risk Management practices, and avoid having your transactions closed due to insufficient balance.
Equity: The net value of your account, including the profits or losses from any open positions.
Balance: The net value of your account, before opening your current transaction(s). It gets updated every time you close a deal.
Tip: Ask your Account Manager to explain the difference between Account Equity and Balance, in your trading account.
Exposure Coverage: The percentage of how much the markets can move against you in order to have your transactions closed, causing you to lose. Some brokers allow you to set the levels for your Exposure Coverage notification.
Tips: Make sure to check with your broker which is your exposure coverage and ask him to help you identify the optimal levels, based on your trading experience and market flexibility.
Maintenance Margin: The minimum amount of funds necessary to open a position.
Net Exposure: Represents the percentage difference between a trader’s long and short transactions. Based on the net exposure a lot of traders use it for their strategies, by choosing between net log, net short and market neutral styles.
Tip: Ask your Account Manager to help you identify the right exposure strategy, based on the assets and market expectations you have. As he won’t be allowed to give you investment advice, try to give him as much information as possible, regarding the transactions that you might want to open as: the asset, direction, margin usage etc.
Maximum Exposure: The maximum amount you can invest using the leverage, regardless of your invested capital.
Tip: Many traders base their Risk Management strategies starting from their Maximum Exposure, as it allows them to lower their risks, by diversifying their portfolios which can lower their exposure. What could your Account Manager tell you about this strategy?