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What is Margin?

Margin that defines, a trader is to open the position in Forex trading of broker’s platform, some percentage of  amount will deduct from equity balance as you deposited.it depends on brokers because broker are used this margin of your trading account either opening new position or holding position short or long.

I am using this margin, to find out margin or calculator.

Required margin price for 1 Standard lot= Trade size/(leverage*market price )

Example in real currency pair:

Trade position with one standard lot of currency pair EURUSD and with leverage 400:1 at current market price $1.12449 and trade size unit 100,000.

Margin required=100,000/(400*1.12449)

=$281.12

You find out margin of other currency pair by using my formula. Margin is different in forex and CFD. It depend broker’s requirement and what leverage you trade.

You just make & set this formula in MS Excel. You know easily, what is margin required to trade a particular position of particular security/stock.

Read and learn,Imrove your trading style.

Thank you

5 Comments

  1. Otilia says:

    Thanks to the wonderful guide

  2. article says:

    This is truly helpful, thanks.

  3. I spent a lot of time to find something similar to this

  4. Angel says:

    This is truly helpful, thanks.

  5. Thanks, it is very informative

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