Margin Required calculation
Created at 30 Oct 2021, 09:05
Margin Required calculation
30 Oct 2021, 09:05
Hi
What is the formula to calculate the margin requirement,
let me know the the below formula is correct
TradeVol * ContractSize * EntryPrice * 100 / MarginPercentage / Levarage
Eg
NZDUSD: Below Info from Symbol Details
Contract Size = 100000 (Lot Size)
Margin Percentage = 1:100 (Shown as Leverage in symbol info)
Broker Provided Leverage = 100
Requested Trade Vol = 6.7 Lots
Entry Price = 0.71494
Margin Required = 6.7 x 100000 x 0.71494 * 100 / 100 / 100
So Margin Required is 4790.098 $
Please let me is this the correct formula to calculate for the CFD also
Regards
Ahmed
amusleh
01 Nov 2021, 08:26
Hi,
Please read this tutorial: How to Calculate Margin for Forex Trades (valutrades.com)
You have to convert the required margin from symbol base currency to your account currency.
For CFDs you can't get the base currency with automate API, that's the problem, but for Forex the base currency is the first currency on symbol pair.
@amusleh