Used Stock Margin
What's Used Margin? : amount of money in your account which has already been used up when buying a trade order, this order is the one that is displayed in open trade positions. As a trader you can not use this sum of money after opening a trade because you have already used it in another trade and it's not available to you.
In other terms, because your broker has opened up a trade transaction for you using the trading capital you've borrowed, you must preserve this usable margin for your account as a collateral to allow you to continue using this leverage that the broker has given to you.
Example of Used Margin is Calculated on MT4
The indices margin examples on MetaTrader 4 Platform below, the set stock leverage ratio option is 100:1, the 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 of the amount, 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 Margin in Indices Trading?
Used Margin - $2683.07
Indices Margin used to open stock trades in MT4 example above
To Learn and Know More about Indices Leverage & Margin - How to Read the Topics Below:
Leverage & Margin Explained
What's a Trade Plan? - Written Plan Example Template
Alternatives: Automated EA Trading or Copy and Paste Signals
