How Do I Calculate Margin Requirements in Indices Trading

Free Margin Calculator and Used Indices Margin Calculator

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

MetaTrader 4 Software Margin Calculator Indices - MetaTrader 4 Margin Calculation

MT4 Margin Calculation

• If = 50:1 - 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 funds is $1,000 after leverage you control $50,000 - $1,000 is what percentage of $50,000 - it is 2% margin) that is your margin requirement

• If = 20:1 - Leverage Ratio

Then the 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 funds is $1,000 after leverage you control $20,000 - $1,000 is what percentage of $20,000 - it is 5% margin) that is your trading margin requirement

• If = 10:1 - Leverage Ratio

Then the 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 percent

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