How to compute the margin? - Aussie Stock Forums

# Thread: How to compute the margin?

1. ## How to compute the margin?

Example, Greece 20,

the rate is 252
2000 contract.
after leverage-
the value is =A\$75410
The margin is A\$1508

-------------------------------
The margin is A\$1508,
so the open is A\$1508 X100 = A\$150,800?
and the leverage must be 2?

the rate is 252,
so one point = AUD\$0.3?

2. ## Re: How to compute the margin?

To compute the margin the formula is

Margin=(Price of currency pair×Lot Size)/Leverage

For example : I am trading in 0.1 lot(\$10000) of EUR/USD and price is 1.12 and leverage is 100. Then the used margin/margin required to trade is

(1.12*10000 units)/100 = \$112

So margin is \$112, same is with others(stocks and stock indices).

3. ## Re: How to compute the margin?

Originally Posted by ryan11
To compute the margin the formula is

Margin=(Price of currency pair×Lot Size)/Leverage

For example : I am trading in 0.1 lot(\$10000) of EUR/USD and price is 1.12 and leverage is 100. Then the used margin/margin required to trade is

(1.12*10000 units)/100 = \$112

So margin is \$112, same is with others(stocks and stock indices).
It can vary greatly depending on the broker/provider. I am currently incurring margin of AUD \$4.25 on microlots for the EUR/USD. That would translate to \$42.50 for a minilot (i.e. 10 x microlots).

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