How to calculate margin | Learn Account Valuation | ETX Capital
Margin is an amount that you put aside from the trade funds (TFA) to act as a security deposit on the place that you need to start. Placing aside capital helps to make certain you have enough equity available to cover potential losses and prevents you over-leveraging your account, effectively limiting the amount of places you can have available at any one given time.
After a position is shut the TFA will update to match your whole equity with no used margin and gain or losses on open positions.
Examples of how to calculate margin
Here are 2 examples of how margin is calculated on an Indices and FX trade.
Indices – Germany 30 instance:
You’d like to place a 50p a point spread wager on the Germany 30, which will be trading at 12000
The margin required with this market is 5% of the exposure on the trade Your vulnerability on this transaction is 50p x 12000 = #6,000
Hence, the margin needed to cover your position is 5% of #6,000 = #300
Forex – example:
You would like to put a 50p per pip spread wager on GBPUSD, which is trading in 1.30000
The margin is 3.33percent of their exposure on the transaction Your exposure is 50p x #13,000 = #6,500
Therefore, the margin necessary to cover your own position is 3.33% of 6,500 = #216.45
For TraderPro users, you will observe the margin required to pay any place right on a populated deal ticket.
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