How to Calculate Commodities Trading Margin Requirement In Commodity Trading
MetaTrader 4 Commodity Trading Margin Calculation
The commodity margin calculation example illustrated and shown below, the set commodity leverage ratio is 100:1, the commodity margin which is 1% is $2683.07, therefore the total amount controlled by the trader is: $268,307 - this is because with this 100:1 leverage ratio, the trader has used little of their money & borrowed the rest using commodity leverage, with this leverage ratio set at 100:1, the trader is using 1% of their capital, this 1% equals to $2683.07, if 1% equals to $2683.07 then 100% is $268,307
Commodity Trading Margin Calculation Formula - MT4 Commodity Platform Margin Calculator Commodity Trading
MetaTrader 4 Margin Calculation
- If = 50:1 - Commodity Trading Leverage Ratio
Then commodity margin requirement = 1/50 *100= 2%
If you have $1,000,
1,000* 50 = $50,000.
1,000 / 50,000 * 100= 2%
(Simplify - your capital is $1,000 after leverage you control $50,000 - $1,000 is what percentage of $50,000 - it is 2% margin) that is your commodity margin requirement
- If = 20:1 - Commodities Trading Leverage Ratio
Then the commodity trading margin requirement = 1/20 *100= 5 %
If you have $1,000,
1,000* 20 = $20,000.
1,000 / 20,000 * 100= 5%
(Simplify - your capital is $1,000 after leverage you control $20,000 - $1,000 is what percentage of $20,000 - it is 5% margin) that is your commodity trading margin requirement
- If = 10:1 - Commodities Trading Leverage Ratio
Then the commodity trading margin percent level requirement is = 1/10 *100= 10 %
If you have $1,000,
1,000* 10 = $10,000.
1,000 / 10,000 * 100= 10%
(Simplify - your capital is $1,000 after leverage you control $10,000 - $1,000 is what percentage of $10,000 - it is 10% margin) that is your commodity trading margin requirement
