![]() Since we just have a single position open, the Used Margin will be the same as Required Margin. Required Margin = Notional Value x Margin RequirementĪssuming your trading account is denominated in USD, since the Margin Requirement is 4%, the Required Margin will be $400.Īside from the trade we just entered, there aren’t any other trades open. this mini lot is 10,000 dollars, which means the position’s Notional Value is $10,000. How much margin (Required Margin) will you need to open the position? ![]() You want to go long USD/JPY and want to open 1 mini lot (10,000 units) position. Let’s say you have an account balance of $1,000. Example #1: Open a long USD/JPY position with 1 mini lot If you want to open new positions, you will have to close existing positions first. ![]() This means that when your Equity is equal or less than your Used Margin, you will NOT be able to open any new positions. Forex brokers use margin levels to determine whether you can open additional positions.ĭifferent brokers set different Margin Level limits, but most brokers set this limit at 100%.
0 Comments
Leave a Reply. |