With the FxPro Margin Calculator you can calculate exactly how much margin is required in order to guarantee a position that you would like to open. Doing so helps you determine whether you should reduce the lot size you are trading, or adjust the leverage you are using, so as not to over-extend your account balance. Select your trading instrument, your trade size, leverage and account currency, and click ‘Calculate’.
For forex, the required margin calculation is as follows:
Required Margin = Trade Size / Leverage * account currency exchange rate (if different from the base currency of the pair traded)
Example: Trading 3 lots of EUR/USD using 1:200 leverage with an account denominated in USD.
- Trade size: 300,000
- Account currency exchange rate: 1.13798
- Required Margin: 300,000 / 200 * 1.13798 = $1706.97
For metals, the required margin calculation is as follows:
Required Margin = Trade Size (0z) / Leverage * Market Price
Example: Trading 1 lot (100 Oz) of GOLD using 1:200 leverage with an account denominated in USD.
- Trade size = 100 Oz
- Market price = 1235.90
- Required Margin: 100 / 200 * 1235.90 = $617.95
Please note that dynamic leverage applies on the FxPro MT4 and MT5 platforms. For more information please visit: http://www.fxpro.co.uk/trading/products/info