MT4 Metals Margin Level Percent Calculation
Margin Level Metals Trading Calculator - MT4 Metals Trading Margin Level Percentage Calculator - Calculating Metals Margin Example on MT4.
This learn metals trading tutorial will explain What is Metals Trading Margin Requirement in metal trading & how it is calculated on the MT4 platform.
Examples of How to Calculate Margin Level Percentage on MT4 Software
If metals leverage = 100:1
1,000 / 100,000 * 100= 1%
Margin required = 1%
(1/100 *100= 1%)
'Trade Forex Trading - Please simplify because I am Beginner'
(Simplify - your metals trading capital is $1,000 after metals leverage you control $100,000 - $1,000 is what percentage of $100,000 - it is 1 %) that is your metals trading margin requirement for your metal trading account.
The metals margin example in MT4 metals Software below, the set metal leverage is 100:1, the metals 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 & borrowed the rest, with this set at 100:1, the trader is using 1 % of their account capital, this 1% is equivalent to $2683.07, if 1% is equal to $2683.07 then 100% is $268,307
MetaTrader 4 Metals Trading Margin Calculation - MetaTrader 4 metals margin level percent calculator Example
Now if Your Metals Trading Leverage is 100:1
When trading if you have $1,000 & use option 100:1 and buy 1 Mini lot for $10,000 your margin on this transaction is $1000 dollars in your metals trading Mini metal trading account, this margin is the money that you will lose if your open trade transaction goes against you - the other $99,000 that is borrowed, the broker will close the open metals trade transactions automatically once your $1,000 has been taken by the metals market.
But this is if your metals broker has set 0% Metals Margin Requirement before closing your metal trades automatically.
For 20% margin requirement before closing your metal trades automatically, then your trades will be closed once your balance gets to $200
For 50% margin requirement of this level before closing your metal trades automatically, then your trades will be closed once your balance gets to $500
If your metal broker sets 100% trading margin requirement of this level before closing out your open trade positions automatically, then your open trades will be automatically closed out once your account balance gets to $1,000: Explanation that the trade will be closedout as soon as you the trader executes it because even if you pay a 1 pips spreads your trading account balance will get to $990 & the needed percentage is 100% i.e. 1,000 dollars, therefore your trade orders will immediately get closed-out.
Most brokers don't set 100% requirement, but there are those brokers who set 100% aren't suitable for you at all, choose those set 50% or 20% margin requirements, in fact, those brokers who set it at 20% are some of the best because the likely hood they closeout your trade is reduced as shown in examples above.
MetaTrader 4 Metals Margin Level Percent Calculator
In the above MetaTrader 4 metals trading screenshot example, the trader is using $2683.07, the total controlled amount is $268,307, but metals account equity is $16,116.55, therefore used metal leverage is ($268,307 divide by 16,116.55) = 16.64 : 1
16.64 : 1 Used Metals Trading Leverage
The Margin is 600% which is 580% above the required 20% Margin requirement by the broker.
To know about this margin level which is calculated by your MetaTrader 4 metal trading platform automatically - The MT4 Metals Platform will display this as "Metals Margin Requirement", This will be displayed as a percent the higher the percentage the less likely your trades are to get closed.
For Example if - (using a broker that requires 20% margin requirement)
Using 100:1 metals trading leverage
If metal leverage is 100:1 & you transact 10 Mini Lots, equals to $100,000
$100,000 dollars divide by 100:1, used capital is $1000
Calculation:
= Capital Used * Percent(100)
= $1,000/$1000 * Percent(100)
Metals Margin Requirement = 100 %
Investor has 80% above the required trading margin level amount
Using 10:1
If metals leverage is 10:1 & you transact 1 Mini Lot, equals to $10,000
$10,000 dollars divide by 100:1, used capital is $100
Calculation:
= Capital Used * Percent(100)
= $1,000/$100 * Percent(100)
Metals Margin Requirement = 1000 %
Investor has 980% above the required trading margin level amount
Using 1:1 metals trading leverage
If metal leverage is 1:1 & you transact 0.1 Mini Lot, equals to $1,000
$1,000 dollars divide by 100:1, used capital is $10
Calculation:
= Capital Used * Percent(100)
= $1,000/$10 * Percentage(100)
Metals Trading Margin Requirement = 10,000 %
Investor has 9800% above the required trading margin level amount
