How is Used Indices Margin Calculated?
Used Stock Margin
What's Used Indices Margin? : amount of money in your account that has been already used up when buying a trade order, this stock order is the one that is displayed in open trades. As a trader you can't use this sum of money after opening a transaction because you've already used it & it isn't available to you.
In other terms, because your online broker has opened up a trade for you using the capital you have borrowed, you must maintain this usable margin for your trading account as a collateral to allow you to continue using this leverage that the broker has given you.
Example of How is Used Margin Calculated on MetaTrader 4?
The margin examples in MetaTrader 4 below, the set leverage is 100 : 1, the margin which is 1 percent is $2683.07, therefore the total amount controlled by trader is: $268,307 - this is because with this leverage the trader has used little of his money and borrowed the rest of the money, with this set at 100:1, trader is using 1% of their capital, this 1 percent equals to $2683.07, if 1% equals to $2683.07 then 100% is $268,307
How is Used Margin Calculated?
Used Margin - $2683.07 dollars
Indices Margin used to open stock trades on MetaTrader 4 example above
To Learn & Know More about Leverage and Margin - How to Read the Courses Below:
Indices Leverage & Margin Explained
