How to Calculate Indices Trading Margin Requirement in Indices Trading

Free Indices Trading Margin Calculator and Used Indices Trading Margin Calculator

The indices margin calculation example explained and illustrated below, the set indices leverage ratio is 100:1, the indices margin which is 1% is $2683.07, therefore the total amount controlled by indices trader is: $268,307 - this is because with this 100:1 leverage ratio, the trader has used little of their money & borrowed the rest using indices leverage, with this leverage ratio set at 100:1, the trader is using 1% of their capital, this 1% equals to $2683.07, if 1% equals to $2683.07 then 100% is $268,307

MetaTrader 4 Indices Trading Software Margin Calculator Indices Trading - MetaTrader 4 Margin Calculation

MetaTrader 4 Margin Calculation

• If = 50:1 - Indices Leverage Ratio

Then indices margin requirement = 1/50 *100= 2%

If you have $1,000,

1,000* 50 = $50,000.

1,000 / 50,000 * 100= 2%

(Simplify - your capital is $1,000 after leverage you control $50,000 - $1,000 is what percentage of $50,000 - it is 2% margin) that is your indices margin requirement

• If = 20:1 - Indices Leverage Ratio

Then the indices trading margin requirement = 1/20 *100= 5%

If you have $1,000,

1,000* 20 = $20,000.

1,000 / 20,000 * 100= 5%

(Simplify - your capital is $1,000 after leverage you control $20,000 - $1,000 is what percentage of $20,000 - it is 5% margin) that is your indices trading margin requirement

• If = 10:1 - Indices Leverage Ratio

Then the indices trading margin percent level requirement is = 1/10 *100= 10 %

If you have $1,000,

1,000* 10 = $10,000.

1,000 / 10,000 * 100= 10%

(Simplify - your capital is $1,000 after leverage you control $10,000 - $1,000 is what percentage of $10,000 - it is 10% margin) that is your indices trading margin requirement