What Does a USD Margin Portfolio Simulation Look Like on Pluang?

A simulation is the clearest way to see how the USD Margin metrics move together. Take a user who tops up $100 into USD Margin and buys 2 shares at $100 each using 2x leverage. Balance is $100, Equity is $100 because there is no unrealised profit or loss yet, Position Margin is $100, Free Margin is $0, and Withdrawable Cash is $0 — the entire wallet is committed. If the share price then falls to $95, the position carries a $10 unrealised loss: Balance stays $100, but Equity drops to $90 and Free Margin becomes negative $10. Topping up another $100 lifts Balance to $200 and Equity to $190, while Position Margin stays at $100, so Withdrawable Cash becomes $90 under the Min(Balance, Equity) minus used margin formula.

• Starting point: Top up $100, buy 2 shares at $100 each with 2x leverage — margin used is $100.
• Step 1 metrics: Balance $100, Equity $100, Position Margin $100, Free Margin $0, Withdrawable Cash $0.
• Step 2 — price falls to $95: Unrealised loss of $10: Balance stays $100, Equity falls to $90, Free Margin becomes −$10.
• Why Balance did not move: Balance only changes on deposits, withdrawals and realised profit or loss — not on price moves.
• Step 3 — top up another $100: Balance rises to $200 and Equity to $190; Position Margin is unchanged at $100.
• Resulting Withdrawable Cash: Min($200, $190) − $100 = $90 available to withdraw.
• The lesson: Equity tracks the market in real time while Balance does not, and Withdrawable Cash follows the lower of the two.

Related questions:

Q: Why is Withdrawable Cash $0 at the very start?
Because the whole wallet is committed. The user deposited $100 and used all $100 as margin for the 2x position, so Position Margin equals the full Balance. Applying the formula, Min($100, $100) minus $100 of used margin leaves nothing. Withdrawable Cash only appears once the wallet holds more than the margin its open positions require. Any further top-up would begin building that surplus straight away.

Q: Why does Equity fall but Balance stay the same?
They measure different things. Balance is Net Deposit plus realised profit and loss after fees, so it moves only when money enters or leaves, or when a position is actually closed. Equity is Balance plus unrealised profit and loss, so it tracks live market prices. A $10 paper loss cuts Equity to $90 while Balance remains at $100 until that loss is realised.

Q: What does a negative Free Margin mean here?
Free Margin is Equity minus the margin in use, so at Equity $90 against $100 of Position Margin it reads negative $10. It signals that the wallet's live value no longer fully covers the margin its open positions require. That is the condition that pushes Margin Level below 100% and moves the account toward margin call territory. Left unaddressed as prices fall further, it is the path toward a formal margin call.

Q: How did the second top-up produce $90 withdrawable?
Balance rose to $200 and Equity to $190, since the $10 unrealised loss still applies. Position Margin was unchanged at $100 because no new position was opened. Min($200, $190) is $190, minus $100 of used margin gives $90. Note that $10 of the fresh $100 was effectively absorbed covering the existing shortfall. That absorbed portion is not lost — it returns to withdrawable if the position recovers or is closed.