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