what is margin level?

huqenamul
439

hi guys,

I am a newbie in Forex and take a 1:200 leverage for my account. i've a deposit of $300. now what should be my margin call?

Can anyone explain this thing consider my deposit:

what is margin?

what is free margin?

what is margin level?

Paul75
1316
Paul75  

To calculate margin you have to use formula:

cost/ 100 - (xx% of margin) x 100= price

Leverage is 200 (i.e. 200:1)

If trading a USDxxx pair:

Margin = StandardLot * LotSize / Leverage

Example (trading 0.1 lots of USDJPY):

Margin = 100,000 * 0.1 / 200 = 50 USD set aside as margin (used margin).

If trading a xxxUSD pair:

Margin = StandardLot * quote * LotSize / Leverage

Example (trading 0.5 lots of GBPUSD @ 1.3982):

Margin = 100,000 * 1.3982 * 0.5 / 200 = 349.55 USD.

more information you can check here:- Margin Calculation Formula | Forex Software Solutions

ValueFX
155
ValueFX  
huqenamul:
hi guys, I am a newbie in Forex and take a 1:200 leverage for my account. i've a deposit of $300. now what should be my margin call? Can anyone explain this thing consider my deposit: what is margin? what is free margin? what is margin level?

First of all, Margin calls are determined by brokers so yours should be with your broker,find out from them what percentage it is from their online chat support.

2, Margin is Margin is the amount of the money that participates in a position or trade and is based on your leverage , so using your leverage 1:200, let assume you open 1lot of EURUSD you will need a Margin of 552.42 USD

3.Free margin is the difference of your account equity and the open positions’ margin: so

Free Margin = Equity – Margin

With your deposit $300 lets assume you have some open positions with your total margin as 552.42 USD and your positions are $400 in profit

Therefore:

Equity =$300+400 = $700(Equity is your account balance plus the floating profit/loss of your open positions)

Free margin =700-552.42 =147.58

3.Margin level is the ratio of equity to margin:

Margin Level = (Equity / Margin) x 100

So: 700/552.42 * 100

Ask your broker for their trader calculator, these calculation should be simple using them.Goodluck

General1
17
General1  
sharkforex:
By explanining = a long post, I think you should use an online tool provided by your broker, just fill out your fund and your leverage, they would give you the exact margin call.

Thats was the simplest thing to have done and its even stated in Valuefx posts

priya0710
38
priya0710  

Margin level is the amount that has to be maintained by trader with their brokers in order to trade in stock market. It is mandatory to maintain.