How is CFD Margin Calculated? CFDs Margin is equal to Used CFDs Margin added to Free CFDs Margin

CFD Margin = Used CFDs Margin + Free CFDs Margin

What is Used CFDs Margin? : amount of money in your trading account which has already been used up when buying a cfd lot, this contract is one that's displayed in open trades. As a trader you can not use this amount of money after opening a trade order transaction because you've already used it & it is not available to you.

In other words, because your cfd 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 cfd leverage he has given you.

What's Free CFDs Margin? : amount in your account that you can use to open new trade positions. This is amount of money in your account that has not yet been cfd leveraged because you have not yet opened a trade 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 CFD Margin Calculated on MT4?

The cfd margin examples in MetaTrader 4 cfd Platform below, the set cfds leverage is 100:1, the cfd trading margin is equal to cfd used margin plus cfd free margin.

CFDs Margin is equal to Used CFDs Margin + Free CFDs Margin