Margin calculations | Forex Factory

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Margin calculations

  • #1
  • First Post: Sep 22, 2013 4:28pm Sep 22, 2013 4:28pm
Hello

Anyone as a formula to calculate the margin requirement

My broker is Interactive Brokers Canada
My account is in CAD

EX:
pair 35000 USD.JPY = 99.25
CAD.Jpy = 93.38

I'm looking for the formula, not the answer

Martin
  • #2
  • Sep 23, 2013 12:59am Sep 23, 2013 12:59am
Quoting arjfca
Hello Anyone as a formula to calculate the margin requirement My broker is Interactive Brokers Canada My account is in CAD EX: pair 35000 USD.JPY = 99.25 CAD.Jpy = 93.38 I'm looking for the formula, not the answer Martin
depends on your leverage with the broker.....

say you are taking a 1 lot $100,000 dollar position in a pair @ leverage of 100:1 = $1000 margin requirement 200:1 = $500 etc..

so you need the broker leverage for the security (may vary depending what you are trading), the margin currency for the security and the lot size for the security then you can calc it.
  • #3
  • Sep 23, 2013 1:52am Sep 23, 2013 1:52am
Quoting MaxDoom
{quote} depends on your leverage with the broker..... say you are taking a 1 lot $100,000 dollar position in a pair @ leverage of 100:1 = $1000 margin requirement 200:1 = $500 etc.. so you need the broker leverage for the security (may vary depending what you are trading), the margin currency for the security and the lot size for the security then you can calc it.
Hello Maxdom

For CAD.JPY the margin required by IB Canada is 31.25:1
  • #4
  • Edited 2:10am Sep 23, 2013 1:58am | Edited 2:10am
Quoting arjfca
{quote} Hello Maxdom For CAD.JPY the margin required by IB Canada is 31.25:1
ok so now you can work it out..

edit: are you there yet?

take the front currency CAD

I will assume 100,000 units ie: 1 lot trade size

100,000 / 31.25 = 3,200 C$

now convert that amount to your account currency
  • #5
  • Sep 23, 2013 6:31pm Sep 23, 2013 6:31pm
Quoting MaxDoom
{quote} ok so now you can work it out.. edit: are you there yet? take the front currency CAD I will assume 100,000 units ie: 1 lot trade size 100,000 / 31.25 = 3,200 C$ now convert that amount to your account currency
Thank you Maxdoom

Have a good day
Martin
  • #6
  • Sep 23, 2013 7:17pm Sep 23, 2013 7:17pm
Example of calculation:

Position of 1 mio EURUSD at 1.2000
Exposure on the account = USD 1,200,000
Profit and losses = 0
Leverage authorized for the account = 1:20
Equity = USD 100,000
Used Margin = Exposure on the account / Leverage = USD 1,200,000 / 20 = USD 60,000
Use of leverage = Used Margin / Equity = 60,000 / 100,000 = 60%
MT4/MT5 EAs/Indicators/Alerts coder
  • #7
  • Apr 29, 2016 11:13am Apr 29, 2016 11:13am
Margin Calculation: Thread - anyone need help? #Post 513 - http://www.forexfactory.com/showthre...25#post8896625
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #8
  • Last Post: Apr 29, 2016 11:29am Apr 29, 2016 11:29am
Online calculator:

http://www.investing.com/tools/margin-calculator
It never gets easier, you just get better
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