Used Stock Indices Trading Margin
What's Used Indices Trading Margin? : amount of money in your account which has already been used up when buying a indices trade order, this stock indices order is the one that is displayed in open trade positions. As a trader you can't use this amount of money after opening a trade because you have already used it in another trade and it is not available to you.
In other words, because your indices broker has opened up a position for you using the capital you have borrowed, you must maintain this usable margin for your trading account as a security to allow you to continue using this indices trading leverage that the broker has given to you.
Example of Used Indices Margin is Calculated on MT4
The indices margin examples on MetaTrader 4 indices Platform below, the set stock index leverage ratio is 100:1, the indices trading margin which is 1% is $2683.07, therefore the total amount controlled by the trader is: $268,307 - this is because with this leverage the trader has used little of his money & borrowed the rest, with this set at 100:1, trader is using 1% of their capital, this 1% equals to $2683.07, if 1% equals to $2683.07 then 100% is $268,307
What's Used Indices Trading Margin in Indices Trading?
Used Indices Margin - $2683.07
Indices Trading Margin used to open stock indices trades in MT4 example above
To Learn & Know More about Indices Leverage & Margin - How to Read the Topics Below:
Indices Leverage & Margin Explained
