MT5 Stock Margin Calculator Formula
Examples of what is indices margin in MetaTrader 5 software & What is Stock Margin, What's Required Stock Margin, What's Indices Equity, What's Used Stock Margin and What's Free Stock Indices margin.
Indices Margin, Required Stock Margin, Equity, Used Margin & Free Stock Margin
What's Required Margin? : Required Margin is the sum of money your online broker requires from you to open a trade position. It is expressed in %.
What's Indices Equity? : Indices Equity is the total amount of capital you've in your trading account.
What's Used Margin? : Used Margin is amount of money in your trading account which has already been used up when buying a indices contract, this indices contract is the one that is displayed in open trade positions. As a trader you can't use this sum of money after opening a trade because you have already used it & it's not available to you to open another trade with.
In other words, because your broker has opened up a indices position for you using the capital you have borrowed, you must sustain this used margin as a security to allow you to continue using the trading leverage the broker has given you.
What's Stock Indices Free Indices Margin? : Stock Indices Free Indices Margin is the amount in your account which you can use to open new trade positions. Free Indices Margin is amount of money in your account which has not yet been leveraged because you've not yet opened a stock trades with this money - this Stock Indices Free Indices Margin is also very important for you as the trader because it enables you as a trader to continue holding your open stock trades as explained below.
Example of What's Indices Margin on MT5 Trading
The indices margin example in MT5 below, the set stock index leverage is 100:1, the margin which is 1% 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 their own money and borrowed the rest from their broker, with this leverage set at 100:1, the trader is using 1 percent of their indices capital, this 1 % is $2683.07 - if 1 percent is $2683.07 then 100 % is $268,307
MT5 Leverage Margin Calculation - MT5 Stock Margin Trading Calculation - MT5 Stock Margin Calculator Formula - MT5 Margin Calculator
Free Indices Margin - $13,433.48
Free Indices Margin that can be used by a trader to open new stock trades on MetaTrader 5 software as is shown on the trading example above.
Used Margin - $2683.07
Stock Margin which has already been used by the trader to open stock trades on MetaTrader 5 software as is shown on the trading example above.
To Learn and Know More about Leverage & Margin - How to Read the Learn Guides Below:
What is Indices Margin Percent on MT5 Discussed
What's a Trade Plan? - Written Plan Example Template
Alternatives: Automated EA Trading or Copy and Paste Signals
