What's Margin Level in MetaTrader 4?
Examples of what's margin on the MetaTrader 4 platform and What is Stock Margin, What is Required Stock Margin, What's Indices Equity, What's Used Stock Margin and What is Free margin.
Indices Margin, Required Stock Margin, Equity, Used Margin & Free Stock Margin
What is Required Margin? : Required Stock Margin is the amount of money your broker requires from you to open a trade position. It is expressed in percent.
What is Equity? : Indices Equity is the total amount of capital you've in your account.
What is Used Margin? : Used Stock Margin is the sum of money in your account which has already been used up when buying a contract, this contract is the one that is displayed in open trade positions. As a trader you cannot use this sum of money after opening a trade because you have already used it and it's not available to you to open another trade with.
In other words, because your broker has opened up a position for you using the capital you've borrowed, you must maintain this used trade margin as a security to allow you to continue using leverage the broker has given you.
What is Free Margin? : Stock Indices Free Margin is the amount in your account which you can use to open new trade positions. Free Margin is amount of money in your account which has not yet been leveraged because you've not yet opened a trade transaction with this money - this Free 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 will be described below.
Example of What is Margin on MetaTrader 4 Software
The margin example on MetaTrader 4 below, the set stock 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% of their capital, this 1 % is $2683.07 - if 1% is $2683.07 then 100% is $268,307
What is Trading Margin Level Meaning in MetaTrader 4? - Stock MetaTrader 4 Margin Calculation
Free Margin - $13,433.48
Free Stock Margin that can be used by a trader to open new stock trades in MetaTrader 4 as displayed on the example above.
Used Margin - $2683.07
Stock Margin which has already been used by the trader to open stock trades on the MetaTrader 4 platform as is shown on the example above.
To Learn and Know More about Stock Leverage & Stock Margin - How to Read the Learn Topics Below:
What is Stock Margin Level on MetaTrader 4 Described
What's a Trade Plan? - Written Plan Example Template
Alternatives: Automated EA Trading or Copy and Paste Signals
