Trading on margin means that you borrow funds from the broker to buy securities. You only pay a certain percentage (or margin) of the value. This allows you to trade beyond your available balance.
Trading on margin allows you to trade beyond your available cash. You borrow money from the broker to do this. Your open securities positions and cash holdings serve as collateral in this case.
The free margin is the sum of your own capital that is not tied up in any position and that you can use for new positions in the market. But that is not all, because the free margin is also the difference between your equity and your already deposited margin.
The margin level is the percentage of your equity in the collateral used. In other words, it is the ratio of equity to margin. Margin Level = (Equity/Margin Used) x 100.
The swap is a typical trading fee in Forex and CFD trading. As they are leveraged derivatives, a financing fee (swap) of the trading position is required. The swap depends on the position size, asset, leverage, and broker.
