Margin Calculation ? - Margin Calculate - MQL4 and MetaTrader 4

Fernando Carreiro 2022.05.19 00:39 #1

Alan Ray Northam: At the bottom of the MT4 terminal when the Trade Tab is selected MT4 shows the following parameters: ---> Balance: Equity: Margin: Free Margin: Margin level: <--- My question is "What is the equation used to calculate Margin?"

Free Margin = Equity – Margin (open positions)

Alan Ray Northam 2022.05.19 00:58 #2

I am not looking for what MT4 shows as (Free Margin:). I am looking for the equation for what MT4 shows as (Margin:) for a single open trade.

Fernando Carreiro 2022.05.19 04:20 #3

Alan Ray Northam #: I am not looking for what MT4 shows as (Free Margin:). I am looking for the equation for what MT4 shows as (Margin:) for a single open trade.

Reference: How to calculate Margin & Margin Level on MT4?

For FX currency pairs:

Required Margin = Notional value * Trading Volume/ Leverage
Example: 1 lot EUR/USD at 1:500 Leverage: 100,000 EUR * 1/ 500 = 200 EUR

For Precious Metals:

Required Margin = Volume * Contract Size * Open Price / Leverage
Example: 1 lot XAUUSD: 1 * 100 * 1,263.14 / 500 = $252.63

For Stocks/Equity CFDs:

Required Margin = Volume * Contract Size * Open Price * Margin %
Example: 1 lot AAPL: 1 * 100 * 42.96 * 0.04 = $171.84

Some other reference material:

All this found with a simple Google search.

MODE_MARGINREQUIRED HELP: Error: Not Enough what is margin level?

Alan Ray Northam 2022.05.19 06:00 #4

Fernando Carreiro #:

Reference: How to calculate Margin & Margin Level on MT4?

Some other reference material:

All this found with a simple Google search.

Fernando Carreiro #:

Reference: How to calculate Margin & Margin Level on MT4?

Some other reference material:

All this found with a simple Google search.

Thank you Fernando. Looks like that equation for FX market would be the margin for one lot. If I want the margin for a partial lot, such as 0.03 lots then would I just multiply by 0.03?

margin = 100,000 * 0.03 / 50

Forecast from I partial close in mql5 Collaboration Dolly + Isakas

Fernando Carreiro 2022.05.19 11:51 #5

Alan Ray Northam #:
Thank you Fernando. Looks like that equation for FX market would be the margin for one lot. If I want the margin for a partial lot, such as 0.03 lots then would I just multiply by 0.03?

margin = 100,000 * 0.03 / 50

Required Margin = Notional value * Trading Volume/ Leverage
Example: 1 lot EUR/USD at 1:500 Leverage: 100,000 EUR * 1/ 500 = 200 EUR

Example: 0.03 lot EUR/USD at 1:500 Leverage: 100,000 EUR * 0.03 / 500 = 6.00 EUR

Consider also using this instead:

MarketInfo( _Symbol, MODE_MARGINREQUIRED )

Also have a look at the following:

Forum on trading, automated trading systems and testing trading strategies

AccountFreeMarginCheck issue.

Fernando Carreiro, 2022.04.05 01:03

In MQL4, I use these:

MODE_MARGINCALCMODE

28

Margin calculation mode. 0 - Forex; 1 - CFD; 2 - Futures; 3 - CFD for indices

MODE_MARGININIT

29

Initial margin requirements for 1 lot

MODE_MARGINMAINTENANCE

30

Margin to maintain open orders calculated for 1 lot

MODE_MARGINHEDGED

31

Hedged margin calculated for 1 lot

MODE_MARGINREQUIRED

32

Free margin required to open 1 lot for buying

Forum on trading, automated trading systems and testing trading strategies

Margin requirements calculation

gordon, 2010.04.08 04:42

Margin requirement for 1 lot is given by MarketInfo(symbol,MODE_MARGINREQUIRED). Calculating this value seems to be different among some brokers (specifically ones that use a bridge).

The majority of brokers use this calculation (taken from the article 'Forex Trading ABC' -> https://www.mql5.com/en/articles/1453):

double MarginCalculate(string symbol, double volume)
  {
   string first    = StringSubstr(symbol,0,3); // the first symbol, for example,  EUR
   string second   = StringSubstr(symbol,3,3); // the second symbol, for example, USD
   string currency = AccountCurrency();        // deposit currency, for example,  USD
   double leverage = AccountLeverage();        // leverage, for example,          100
// contract size, for example, 100000
   double contract = MarketInfo(symbol, MODE_LOTSIZE);
   double bid      = MarketInfo(symbol, MODE_BID);      // Bid price
//---- allow only standard forex symbols like XXXYYY
   if(StringLen(symbol) != 6)
     {
      Print("MarginCalculate: '",symbol,"' must be standard forex symbol XXXYYY");
      return(0.0);
     }
//---- check for data availability
   if(bid <= 0 || contract <= 0) 
     {
      Print("MarginCalculate: no market information for '",symbol,"'");
      return(0.0);
     }
//---- check the simplest variations - without cross currencies
   if(first == currency)   
       return(contract*volume / leverage);           // USDxxx
   if(second == currency)  
       return(contract*bid*volume / leverage);       // xxxUSD
//---- check normal cross currencies, search for direct conversion through deposit currency
   string base = currency + first;                   // USDxxx
   if(MarketInfo(base, MODE_BID) > 0) 
       return(contract / MarketInfo(base, MODE_BID)*volume / leverage);
//---- try vice versa
   base = first + currency;                          // xxxUSD
   if(MarketInfo(base, MODE_BID) > 0) 
       return(contract*MarketInfo(base, MODE_BID)*volume / leverage);
//---- direct conversion is impossible
   Print("MarginCalculate: can not convert '",symbol,"'");
   return(0.0);
  }

But some brokers do not factor 'bid' price when calculating (regardless of symbol):

double MarginCalculate(string symbol, double volume)
  {
   double leverage = AccountLeverage(); 
   double contract = MarketInfo(symbol, MODE_LOTSIZE);
   return(contract*volume / leverage);
  }

Note that MODE_MARGINREQUIRED is 'static' in Tester and that both methods of calculation cannot be used in Tester (they rely on MarketInfo() of other symbols...).

Does Higher Leverage Mean Margin requirements calculation MODE_MARGINREQUIRED

Alberto Tortella 2023.07.10 06:27 #6

Hi all, I would like to find the max size for a new position using no more than 50% of free margin.

Is this formula correct?

double available_margin = AccountFreeMargin() * 50/100 ;

double max_size = available_margin * MarketInfo(Symbol(),MODE_MINLOT) / MarketInfo(Symbol(),MODE_MARGINREQUIRED) ;

Thank you!

Dominik Egert 2023.07.10 11:15 #7

Alberto Tortella #:

Hi all, I would like to find the max size for a new position using no more than 50% of free margin.

Is this formula correct?

Thank you!

This is an integer operation

50/100

Its outcome will be 0.

You want 0.5, to get that, do this:

50.0/100.0

I haven't checked the rest.

Alberto Tortella 2023.07.10 19:53 #8

Is there a way to recall the requesed margin for every opened position?

I'm trying with Order functions but I don't find it.

Alain Verleyen 2023.07.10 21:41 #9

Alberto Tortella #:

Is there a way to recall the requesed margin for every opened position?

I'm trying with Order functions but I don't find it.

https://docs.mql4.com/account/accountfreemargincheck

AccountFreeMarginCheck - Account Information - MQL4 Reference

docs.mql4.com

AccountFreeMarginCheck - Account Information - MQL4 Reference

Alain Verleyen 2023.07.10 21:41 #10

Dominik Christian Egert #:

This is an integer operation

Its outcome will be 0.

You want 0.5, to get that, do this:

Or type 0.5

MODE_MARGINCALCMODE	28	Margin calculation mode. 0 - Forex; 1 - CFD; 2 - Futures; 3 - CFD for indices
MODE_MARGININIT	29	Initial margin requirements for 1 lot
MODE_MARGINMAINTENANCE	30	Margin to maintain open orders calculated for 1 lot
MODE_MARGINHEDGED	31	Hedged margin calculated for 1 lot
MODE_MARGINREQUIRED	32	Free margin required to open 1 lot for buying