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 is 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 sum of money your broker requires from you to open a trade transaction. It's expressed in %.
What is Indices Equity? : Indices Equity is the total sum of capital you have in your account.
What is 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 transactions. You can not use this amount of money after opening a trade transaction because you've 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 is Stock Indices Free Margin? : Stock Indices Free Margin is the amount in your trading account which you can use to open new trades. Stock Indices Free Margin is amount of money in your trading account which hasn't yet been leveraged because you haven't yet opened a trade transaction with this money - this Free Margin also is very crucial for you as the trader because it enables you as a indices trader to continue holding your open stock trades as will be explained below.
Example of What's Margin on MT4 Platform Software
The margin example in MetaTrader 4 below, the set stock leverage 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 online broker, with this leverage set at 100:1, the trader is using 1 percent% of their trading capital, this 1 percent% is $2683.07 dollars - if 1 percent% is $2683.07 dollars then 100% is $268,307
What's Margin Level Meaning in MT4? - Stock MT4 Margin Calculation
Free Margin - $13,433.48 dollars
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
Study More Lessons and Topics:
- Indices Margin Calculator App
- The Best Stock Index Trade Apps for Index Trade
- How to Install MetaTrader 4 Stock Indices Platform Software Platform
- The Most Active Indices Market Session Overlaps & The Three Major Indices Sessions
- How to Add Fractals Trading Indicator in Stock Index Chart on MT4 Platform
- Developing Indices System: Indicator Indices System
- Indices Charts Analysis of Stock Indices Patterns Guide
