MetaTrader 5 Margin Calculation Indices
Examples of indices margin concepts within MetaTrader 5 include Stock Margin requirements, Indices Equity calculations, Used Stock Margin metrics, and Free Index Margin figures.
Stock Margin, Required Margin, Equity, Used Stock Margin and Free Indices Margin
Required Margin is the amount your broker needs from you to open a trade. It's usually shown as a percentage.
What's Index Equity? : Indices Equity is the total sum of capital you've got on your stocks account.
What's Used Margin? : Used Margin is amount of money in your stock trading account which has already been used when buying a indices contract, this indices contract is the one that is shown and displayed in open trade position transactions. As a trader you can't use this amount of money after opening a trade because you've already used it and it is not available to you to open another trade with.
Since your broker establishes an indices position using borrowed capital on your behalf, you are required to maintain the used margin as security. This ensures that you, as a trader, can continue utilizing the leverage provided by your broker.
What is Index Free Indices Margin? : Index Free Indices Margin is the sum of money in your stock account which you can use to open new positions. Free Indices Margin refers to unleveraged funds in your account that have not been used in open trades. This margin is critical as it enables you to maintain your current positions. A detailed explanation is provided below on how Free Indices Margin supports ongoing stock trades.
Explanation of What's Stock Margin in MT5 Software Platform
The example illustrating indices margin usage on MT5 is shown below. With the specified leverage ratio of 100:1, the required margin, which is 1%, amounts to $2683.07. Consequently, the total asset value under the trader's command is $268,307. This is due to the leverage mechanism where the trader utilizes minimal proprietary funds and borrows the remaining required capital from the broker. With this leverage for indices fixed at 100:1, the trader is utilizing 1 percent of their capital allocated to index trading, equating to $2683.07. Therefore, if 1% is valued at $2683.07, the full 100% value totals $268,307.
MetaTrader 5 Leverage Margin Calculation - MT5 Stock Margin Trading Calculator - MT5 Stock Margin Trading Calculator Formula - MT5 Stock Margin Level Calculation - MT5 Margin Trading Calculator
Free Indices Margin - $13,433.48
Free Indices Margin which can be used by a trader to execute new stock trades in the MetaTrader 5 software as is displayed on the stock illustration above.
Used Margin - $2683.07
Stock Margin that has already been used by the trader to open stock trades in the MetaTrader 5 software as is displayed on the stock trading illustration above.
To deepen your knowledge about leverage and margin, begin reading the learning guides that are described and explained in this section.
What is Indices Margin Percent in MT5 Discussed
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