What is the difference between available margin and used margin

Used margin is the amount of funds locked up to keep your current open positions active, while available margin (often called free margin) is the remaining equity you have left to open new trades. Think of used margin as your deposit collateral and available margin as your purchasing power.

In prop firm trading, keeping a healthy eye on your margin is critical. If your floating losses grow too large, your available margin shrinks, which can lead to a margin call or automatic stop-out. This can accidentally trigger a breach of your daily loss limits or overall drawdown rules before you even realize it.

How do you manage your margin utilization during volatile news events?