What's Margin Level in MT4?
Examples of what is margin on the MetaTrader 4 platform & What is Stock Margin, What's Required Stock Margin, What's Indices Equity, What's Used Stock Margin and What's Free margin.
Indices Margin, Required Stock Margin, Equity, Used Indices Margin & Free Stock Margin
What's Required Indices Margin? : Required Stock Margin is the amount of money your broker requires from you to open a trade position. It is expressed in %.
What's Indices Equity? : Indices Equity is the total sum of capital you have in your trading account.
What's Used Indices Margin? : Used Stock Margin is the amount of money in your trading account that has already been used up when buying a contract, this contract is the one that is displayed in open trade positions. You can not use this amount of money after opening a trade because you have already used it & it is not available to you to open another trade with.
In other terms, because your online broker has opened up a position for you using the capital you have borrowed, you must maintain this used trade margin as a security to allow you to continue using leverage the broker has given you.
What's Stock Indices Free Margin? : Stock Indices Free Margin is the amount in your trading account that you can use to open new trade positions. Stock Indices Free Margin is amount of money in your trading account which hasn't yet been leveraged because you have not yet opened a trade 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's Margin on MT4 Platform Software
The margin example in MetaTrader 4 below, the set stock leverage ratio 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 leverage a 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 capital, this 1 % is $2683.07 - if 1 % is $2683.07 then 100% is $268,307
What's Margin Level Meaning in MT4? - Stock MT4 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 trading above example.
Used Indices Margin - $2683.07
Stock Margin that has already been used up by the trader to open stock trades on the MetaTrader 4 platform as is shown on the trading above example.
To Learn and Know More about Stock Leverage & Stock Margin - How to Read the Learn Indices Courses Below:
What is Stock Margin Level on MetaTrader 4 Discussed
