How is Indices Trading Margin Calculated? Indices Trading Margin is equal to Used Indices Trading Margin added to Free Indices Trading Margin
Indices Trading Margin = Used Indices Trading Margin + Free Indices Trading Margin
What is Used Indices Trading Margin? : amount of money in your account that has already been used up when buying a indices lot, this contract is the one that is displayed in the open positions. As a trader you cannot use this amount of money after opening a trade because you have already used it and it is not available to you.
In other words, because your indices broker has opened up a position for you using the capital you have borrowed, you must maintain this usable margin for you as a security to allow you to continue using this indices trading leverage he has given you.
What is Free Indices Trading Margin? : amount in your account that you can use to open new positions. This is the amount of money in your account that has not yet been indices trading leveraged because you have not yet opened a transaction with this money - this is also very important for you as a investor because it enables you to continue holding your open trades as will be explained below.
Example of How is Indices Trading Margin Calculated on MetaTrader 4
The indices trading margin example on MT4 indices trading Platform below, the set stock indices leverage is 100:1, the indices trading margin is equal to indices trading used margin plus indices trading free margin.
Indices Trading Margin is equal to Used Indices Trading Margin + Free Indices Trading Margin
Indices Trading Margin - $16,116.55
Indices Trading Margin is equal to Used Indices Trading Margin + Free Indices Trading Margin
$16,116.55 = $2683.07 + $13,433.48
Used Indices Trading Margin - $2683.07
Indices Trading Margin used to open trades on the MetaTrader 4 platform example above
Free Indices Trading Margin - $13,433.48
Free Indices Trading Margin that can be used to open new stock indices trades on the MetaTrader 4 platform example above.
Indices Trading Margin is equal to Used Indices Trading Margin + Free Indices Trading Margin
To Learn and Know More about Indices Trading Leverage and Margin - How to Read the Topics Below:
Indices Trading Leverage and Margin Explained
Regulated Indices Broker Information: Read About Regulated Indices Broker Review
Takes 5 Minutes to Open an Account, Open an Account Early: Open Indices Account
