What is Margin Level in MT5?
Example of what is indices margin on the MT5 stock indexes trading platform and What is Stock Indexes Margin, What is Required Stock Indexes Margin, What is Indices Equity, What is Used Stock Indexes Margin and What is Free Stock Indexes margin.
Stock Indexes Margin, Required Stock Indexes Margin, Equity, Used Stock Indexes Margin and Free Stock Indexes Margin
What is Required Indices Margin? : Required Stock Indexes Margin is the amount of money your indices broker requires from you to open a indices trade position. It is expressed in percentage.
What is Indices Equity? : Indices Equity is the total amount of capital you have in your stock indexes trading account.
What is Used Indices Margin? : Used Stock Indexes Margin is the amount of money in your stock indexes trading account that has already been used up when buying a indices contract, this indices contract is the one that is displayed in the open indices trade positions. As a indices trader you cannot use this amount of money after opening a indices trade because you have already used it and it is not available to you to open another indices trade with.
In other words, because your indices broker has opened up a indices position for you using the capital you have borrowed, you must maintain this used margin as a security to allow you to continue using the indices leverage the broker has given you.
What is Stock Indexes Free Indices Trading Margin? : Stock Indexes Free Indices Trading Margin is the amount in your stock indexes trading account that you can use to open new indices trade positions. Stock Indexes Free Indices Trading Margin is the amount of money in your stock indexes trading account that has not yet been leveraged because you have not yet opened a indices trade transaction with this money - this Stock Indexes Free Indices Trading Margin is also very important for you as a trader because it enables you to continue holding your open stock indexes trades as will be explained below.
Example of What is Stock Indexes Margin on MT5
The indices margin example on MT5 stock indexes trading platform below, the set stock indices leverage is 100:1, the indices margin which is 1% is $2683.07 - therefore the total amount controlled by the indices trader is: $268,307 - this is because with this indices trading leverage the indices trader has used little of their own money and borrowed the rest from their indices broker, with this indices leverage set at 100:1, the indices trader is using 1% of their indices trading capital, this 1% is $2683.07 - if 1% is $2683.07 then 100% is $268,307
What is Indices Trading Margin Level Meaning in MT5? - Stock Indexes MT5 Margin Calculation
Free Indices Margin - $13,433.48
Free Stock Indexes Margin that can be used by a indices trader to open new stock indexes trades on the MT5 as shown on the stock indexes trading example above.
Used Indices Margin - $2683.07
Stock Indexes Margin that has already been used by the indices trader to open stock indexes trades on the MT5 stock indexes platform as is shown on the stock indexes trading example above.
To Learn and Know More about Stock Indexes Leverage and Stock Indexes Margin - Read the Learn Indices Topics Below:
What is Stock Indexes Margin Level in MT5 Explained