How is CFD Margin Calculated? CFDs Margin is equal to Used CFD Margin added to Free CFD Margin
CFD Margin = Used CFD Margin + Free CFD Margin
What is Used CFD Margin? : amount of money in your trading account that has already been used up when buying a cfd lot, this contract is the one that is displayed in the open trades. As a trader you can not use this amount of money after opening a trade because you have already used it & it is not available to you.
In other words, because your cfd broker has opened up a position for you using capital you've borrowed, you must maintain this usable margin for your account as a security to allow you to continue using this cfd leverage he has given you.
What's Free CFD Margin? : amount in your account which you can use to open new trades. This is the amount of money in your account which hasn't yet been cfd leveraged because you have not yet opened a trade with this money - this money also is very important for you as a trader because it enables you to continue holding your open trades as will be explained below.
Example of How is CFD Margin Calculated in MetaTrader 4 Platform?
The cfd margin examples on MetaTrader 4 cfd Platform below, the set cfd leverage is 100:1, the cfds trading margin is equal to cfd used margin plus cfd free margin.
MT4 CFD Leverage Margin Calculation - CFDs Margin is equal to Used CFD Margin + Free CFD Margin
CFD Margin - $16,116.55
CFDs Margin is equal to Used CFD Margin + Free CFD Margin
$16,116.55 = $2683.07 + $13,433.48
$2683.07
CFD Margin used to open trades on MT4 platform example above
$13,433.48
Free CFDs Margin that can be used to open new cfds trades on the MT4 platform example above.
CFDs Margin is equal to Used CFD Margin + Free CFD Margin
To Learn and Know More about CFDs Leverage and Margin - How Do I Read the Topics Below:
CFDs Leverage and Margin Explained
