How is Forex Used Margin Calculated?

Forex Used Margin

What is Used Margin? : amount of money in your account which has already been used up when buying a forex trade order, this forex order is the one that is displayed in the open trades. As a trader you can't use this amount of money after opening a trade order because you have already used it & it is not available to you.

In other words, because your forex broker has opened up a position for you using the capital you've borrowed, you must maintain this usable margin for your account as a security to allow you to continue using this leverage that the broker has given you.

Example of How is Forex Used Margin Calculated in MetaTrader 4?

The forex margin examples on MetaTrader 4 forex Platform below, the set leverage is 100:1, the forex margin which is 1% is $2683.07, therefore the total amount controlled by the trader is: $268,307 - this is because with this leverage the trader has used little of his money and borrowed the rest, with this set at 100:1, the FX trader is using only 1% of their trading capital, this 1% is equal to $2683.07, if 1% is equal to $2683.07 then 100% is $268,307

Example of How is Forex Trading Used Margin Calculated in MT4? - Where is Used Forex Margin Calculated in MT4 Software?