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