• Australian (ASX) Stock Market Forum

How to compute the margin?

Discussion in 'Beginner's Lounge' started by steelcat, Feb 19, 2015.

  1. steelcat

    steelcat Well-Known Member

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    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. ryan11

    ryan11 Member

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    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. cynic

    cynic Well-Known Member

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    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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