What's Margin on MT4 Software?
Examples of what is margin on MT4 platform and explanation of Metals Trading Margin, Metals Trading Margin Required, Metals Trading Equity, Used Metals Trading Margin and Metals Trading Free margin.
Metal Trading Margin, Margin Required, Equity, Used Metals Trading Margin & Free margin
What is Margin Required? : It is amount of money your metals broker requires from you to open a position. It is expressed in percentages.
What is Equity? : It is total amount of capital you have in your metal trading account.
What is Used Metals Trading Margin? : amount of money in your account that has already been used up when buying a metals lot, this contract is one that is displayed in the open trades. As a trader you can't 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 is Free Metals Margin? : amount in your trading account which you can use to open new trade positions. This is amount of money in your account that hasn't yet been metals trading 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.
Examples of What's Metals Margin on MetaTrader 4 Platform
The metals trading margin example in MT4 metals Software below, the set metal trading leverage ratio is 100:1, the metals margin which is 1% is $2683.07, therefore the total amount controlled by metals 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 trader is using 1 % of their metals trading capital, this 1% is equivalent to $2683.07, if 1% is equal to $2683.07 then 100% is $268,307
MT4 Metals Leverage Margin Calculation - What is Margin on MT4 Software?
Free Metals Margin - $13,433.48
Free Metals Margin that can be used to open new metal trades on MetaTrader 4 example above.
Used Metals Margin - $2683.07
Metals Margin that has already been used to open trades in the MetaTrader 4 example above.
To Know More about Metals Leverage & Margin - How to Read the Topics Below:
Metals Leverage & Margin Lesson
