We are here to help

« Back
You are here:
Print

Useful Formulas


Margin = 1/LeverageExample: A 50:1 leverage ratio yields a margin percentage of 1/50 = 0.02 = 2%. A 10:1 ratio = 1/10 = 0.1 = 10%.

Leverage = 1/Margin = 100/Margin Percentage

Example: If the margin is 0.02, then the margin percentage is 2%, and leverage = 1/0.02 = 100/2 = 50.

Margin Requirement = Current Price × Units Traded × Margin

You want to buy 100,000 Euros (EUR) with a current price of 1.35 USD, and your broker requires a 2% margin.

Required Margin = 100,000 × 1.35 × 0.02 = $2,700.00 USD.

Free Margin = Equity – Used Margin

Margin level = equity / used margin x 100%

Table of Contents
TOP
Trade Responsibly:Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosures for Financial Instruments
+