What is Margin?

What is Margin?

Margin can be called the amount that we have already traded.
When we remove the amount of money in the investment pot or Equity, which will change according to the opened wood. By calculating the amount in the pot that is positive or negative, it will get Free Margin or the amount that is still available.


Margin calculation method

For example, open a buy at 1USD for 1 lot by
Contract size, the normal pot is 100,000, except for the mini pot that may be 10,000 when all the values ​​have been obtained. We then put it in the formula.

This means that the margin used is 1000 USD.

Once the Equity and Margin are known, we can calculate the Margin level.

Margin level or% Margin may be called the% security of the investment pot. The more it shows that it is now safe. Low left, indicating that it is not safe

The formula is
% Margin = x 100

For example, having a investment of 1,000 usd, trading 100 usd is equal to bringing the remaining 900 divided by 100 used and multiplying 100 = 900% left.
Or open another 150 Usd of wood, this will result in the remaining 750 divided by 250 used and multiply 100 = 300% left.