To calculate the margin, it is necessary to know the following characteristics:
* account balance and currency (1,000 USD)
* leverage (1:100)
* currency pair (EUR/USD)
* trade size (1 lot 10,000 EUR)
To assess the volume of the trade, it is necessary to know what amount of your account's currency you need. => 1 lot = 10,000 EUR
Convert 10,000 EUR in USD = 10,000 * current exchange rate of EUR/USD = 10,000 * 1.5442 = 15,442 USD
Margin is the ratio of trading volume to the leverage.
Margin = 15,442/100 = 154.42 USD
Free margin after opening a trade => 1,000 – 154.42 = 845.58 USD
For a new trade:
* leverage (1:100)
* currency pair (GBP/USD)
* trade volume 2 lots (20,000 GBP)
Trade volume = 20,000 * 1.9627 = 39,254 USD
Margin = 39,254/100 = 392.54 USD
Free margin after opening a trade => 1,000 – 154.42 – 392.54 = 453.04 USD
Margin = 546.96 USD
