Margin Required calculation

Created at 30 Oct 2021, 09:05
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M4

m4trader4

Joined 19.09.2021

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

 

 


@m4trader4
Replies

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