In plain English
What Used margin means
Used margin rises when you open more leveraged positions or when existing positions require more collateral. It is the amount tied to current exposure, not your total account balance. Trading platforms usually show used margin alongside free margin and equity so you can see how much capacity remains.
Why it matters
Used margin helps you judge how much of your account is committed and how much is still available. A high used-margin figure relative to equity leaves less room for adverse price moves and can make a margin call or stop-out more likely.
Example
If a platform shows equity of $10,000 and used margin of $3,000, then $3,000 of collateral is supporting open trades. The remaining account capacity depends on unrealized profit or loss and the broker’s margin rules.
Quick answers
Common questions
Can used margin go down without closing trades?+
Yes. If a broker changes margin requirements or if your exposure changes, the amount reserved can change even before a position is closed.
Does used margin include unrealized loss?+
No. Unrealized profit or loss is usually shown separately as part of equity.
Sources