MetaTrader 4 Indices Trading Margin Calculator

Examples of How to Calculate Margin on MT4

If indices trading leverage = 100:1

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

Margin required = 1%

(1/100 *100= 1%)

"Trade Forex Trading - Please simplify because I am Beginner"

(Simplify - your indices trading capital is $1,000 after stock indices leverage you control $100,000 - $1,000 is what percent of $100,000 - it is 1%) that is your indices trading margin requirement for your stock indices trading account.

The indices trading margin example on MT4 indices trading Platform below, the set stock indices leverage is 100:1, the indices trading margin which is 1% is $2683.07, therefore the total amount controlled by the indices trader is: $268,307 - this is because with this indices trading leverage the trader has used little of his money and borrowed the rest, with this set at 100:1, the trader is using 1 % of their trading capital, this 1% is $2683.07, if 1% is $2683.07 then 100% is $268,307

Calculating Indices Trading Margin on MT4 Explained

• If = 50:1 Indices Trading Leverage - Used Indices Trading Leverage and MetaTrader 4 Indices Trading Margin Calculator

Then indices trading margin requirement on MT4 stock indices trading Platform - 1/50 *100= 2%

if you have $1,000,

1,000* 50 = $50,000.

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

(Simplify - your indices trading capital is $1,000 after stock indices leverage you control $50,000 - $1,000 is what percent of $50,000 - it is 2%) that is your indices trading margin requirement on MT4 indices trading Platform

• If = 20:1 Indices Trading Leverage - Used Indices Trading Leverage and MetaTrader 4 Indices Trading Margin Calculator

Then the indices trading margin requirement on MT4 stock indices trading Platform - 1/20 *100= 5%

if you have $1,000,

1,000* 20 = $20,000.

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

(Simplify - your indices trading capital is $1,000 after stock indices leverage you control $20,000 - $1,000 is what percent of $20,000 - it is 5%) that is your indices trading margin requirement on MT4 indices trading Platform

• If = 10:1 Indices Trading Leverage - Used Indices Trading Leverage and MetaTrader 4 Indices Trading Margin Calculator

Then the indices trading margin on MT4 indices trading Platform requirement is = 1/10 *100= 10%

if you have $1,000,

1,000* 10 = $10,000.

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

(Simplify - your indices trading capital is $1,000 after stock indices leverage you control $10,000 - $1,000 is what percent of $10,000 - it is 10%) that is your indices trading margin requirement on MT4 indices trading Platform

What is the Difference Between Maximum Indices Trading Leverage and Used Indices Trading Leverage

However, you should note that there is a difference between maximum indices trading leverage ( indices trading leverage given by your indices broker which is the highest stock indices leverage you can trade with if you choose to) and used indices trading leverage ( indices trading leverage depending on the lots you have opened/open positions on MT4 indices trading Platform). One is the indices broker's (Maximum Indices Trading Leverage) and the other is indices trader's (Used Indices Trading Leverage). To explain this indices trading used stock indices trading leverage and maximum indices trading leverage concept we shall use the stock indices trading example above:

If your indices broker has given you 100:1 Maximum Indices Trading Leverage, but you only open a trade of 10,000 dollars on MT4 indices trading Platform then Used Indices Trading Leverage is:

10,000 dollars: 1,000 dollars (your money)

10:1

You will have used 10:1 Indices Trading Leverage on MT4 indices trading Platform, but your maximum stock indices leverage is still 100:1 Indices Trading Leverage. This means that even if you are given 100:1 Maximum Indices Trading Leverage or 400:1 Maximum Indices Trading Leverage, you do not have to use all of it. It is best to keep your used indices trading leverage to a maximum of 10:1 while trading on the MT4 indices trading Platform but you will still select 100:1 maximum stock indices leverage option for your indices trading account. The extra indices trading leverage will give you what we call Free Indices Trading Margin on the on MT4 indices trading Platform, As long as you have some Free margin on your MetaTrader 4 indices trading account then your open stock indices trades will not get closed by your indices broker because this margin requirement will remain above the required level on the MT4 indices trading Platform.

When it comes to indices trading one of your rules: indices trading money management rules on your indices trading plan should be to use indices trading leverage below 5:1.

In the above MetaTrader 4 indices trading screenshot example, the trader is using $2683.07, the total controlled amount is $268,307, but indices trading account equity is $16,116.55, therefore used stock indices leverage is ($268,307 divide by 16,116.55) = 16.64 : 1

16.64 : 1 Used Indices Trading Leverage

Indices Trading Margin accounts allows traders to control a large amounts of indices trading units using leverage using little of their own capital while borrowing the rest

Obtaining this MetaTrader 4 indices trading account will enable you to borrow money from the indices broker to trade indices lots with.

The amount of borrowing power your account gives you what is called " indices trading leverage", and is usually expressed as a ratio - a ratio of 100:1 means you can control resources worth 100 times your deposit.

What this means in Indices Trading terms is that with 1% margin in your indices trading account you can control a trade worth $100,000 with a $1,000 deposit.

However, Trading this margin indices trading account increases both potential for profits as well as losses. In Indices Trading you can never lose more than you invest, losses are limited to your deposits and usually brokers will close a transaction that extends beyond your deposit amount by executing a margin call. Indices traders must therefore try to keep their margin level above that required. By using indices trading money management rules and keeping your used indices trading leverage below 5:1.