How to calculate the used margin for a set of buy and sell orders?

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Dear All,

Can you help me find out the general formula for calculating the overall initial margin requirements for a set of long and short positions at the same time?

Assuming that,

  • The same symbol is used, say EUR/USD.
  • The standard lot size is, LOT=100,000.00 units.
  • The leverage is, LEV=200 (i.e. 0.5%).
  • For each single order - buy or sell - the margin is always calculated using this formula, M=(Size*Price)*(LOT/LEV).
Now, suppose that,

  • The total size of long and sell orders are (zB) and (zS) respectively.
  • The total margin of long and sell orders are (mB and mS) respectively.

What is the overall margin (M) formula to get the actual value appears on MT4 as illustrated below?

REMARK:

Under hedging, I've noticed that, the margin (M) is the average of long and short margins, i.e. M=(mB+mS)/2.

else, It should depends on zB, zS, mB and mS, i.e. M=f(zB,zS,,mB,mS).


I've emailed my broker already, but you know; the brokers are always ready when you ready to deposit, sleeping when you want to withdraw, and

DEAD when you want to know what's going on!

Thanks for your help,

 
u should ask your broker this figure is flexible & any broker can decide how he wants to calculate the margin (especially when it comes to hedging transactions)
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