MT4 Forex Margin Calculator - Calculating Forex Margin on MT4 Explained

Examples of How to Calculate Margin on MetaTrader 4

If leverage = 100:1

1,000 / 100,000 * 100= 1%

Margin required = 1%

(1/100 *100= 1%)

"TradeForex Trading - Please simplify because I am Beginner'

(Simplify - your forex capital is $1,000 after leverage you control $100,000 - $1,000 is what percent of $100,000 - it is 1%) that's your forex margin requirement for your forex account.

The forex trading margin examples on MT4 forex Platform below, the set leverage is 100:1, the forex margin which is 1% is $2683.07, therefore the total amount controlled by forex trader is: $268,307 - this is because with this leverage the trader has used little of his money & borrowed the rest, with this set at 100:1, the trader is using 1% of their trading capital, this 1% is equivalent to $2683.07, if 1% is equal to $2683.07 then 100% is $268,307

MetaTrader 4 Forex Margin Calculator - Calculating Forex Margin on MetaTrader 4 Described

• If = 50:1 Leverage - Used Leverage & MT4 Forex Margin Calculator

Then forex margin requirement on MT4 forex Platform = 1/50 *100= 2%

If you have $1,000,

1,000* 50 = $50,000.

1,000 / 50,000 * 100= 2%

(Simplify - your forex trading capital is $1,000 after leverage you control $50,000 - $1,000 is what percentage of $50,000 - it is 2%) that is your forex margin requirement on MT4 forex Platform

• If = 20:1 Leverage - Used Leverage and MetaTrader 4 Forex Margin Calculator

Then the forex margin requirement on MT4 forex Platform = 1/20 *100= 5%

If you have $1,000,

1,000* 20 = $20,000.

1,000 / 20,000 * 100= 5%

(Simplify - your forex trading capital is $1,000 after leverage you control $20,000 - $1,000 is what percentage of $20,000 - it is 5%) that is your forex margin requirement on MT4 forex Platform

• If = 10:1 Leverage - Used Leverage and MetaTrader 4 Forex Margin Calculator

Then the forex margin on MT4 forex Platform requirement is = 1/10 *100= 10%

If you have $1,000,

1,000* 10 = $10,000.

1,000 / 10,000 * 100= 10%

(Simplify - your forex trading capital is $1,000 after leverage you control $10,000 - $1,000 is what percentage of $10,000 - it is 10%) that is your forex margin requirement on MT4 forex Platform

What is the Difference Between Maximum Forex Trading Leverage & Used Leverage?

However, you should note that there is a difference between maximum forex leverage (forex leverage given by your forex broker which is the highest leverage you can trade with if you choose to) & used forex leverage (forex leverage depending on the lots you have opened/open positions on MT4 forex Platform). One is the broker's (Maximum Leverage) and the other is forex trader's (Used Leverage). To explain this forex used leverage & maximum leverage concept we shall use the example above:

If your forex broker has given you 100:1 Maximum forex Leverage, but you only open 1 mini lot of 10,000 dollars on MT4 forex Platform then Used forex Leverage is:

10,000 dollars (1 mini lot ): 1,000 dollars (your money)

10:1

You will have used 10:1 forex Leverage on MT4 forex Platform, but your maximum leverage is still 100:1 Leverage. This means that even if you are given 100:1 Maximum Leverage or 400:1 Maximum Leverage, you do not have to use all of it. It is best to keep your used leverage to a maximum of 10:1 while trading on MT4 forex Platform but you will still select 100:1 maximum leverage option for your forex trading account. The extra leverage will give you what we call Free Margin on the on MT4 forex Platform, As long as you have some Free margin on your MT4 forex trading account then your open forex trades will not get closed by your forex broker because this margin requirement will remain above the required level on the MetaTrader 4 forex Platform.

When it comes to forex trading currencies one of your rules: money management rules on your forex trading plan should be to use leverage below 5:1.

In the above MetaTrader 4 forex trading screen shot example, the trader is using $2683.07, total controlled amount is $268,307, but forex account equity is $16,116.55, therefore used FX leverage is ($268,307 divide by 16,116.55) = 16.64 : 1

16.64 : 1 Used forex Leverage

Forex Margin accounts allows traders to control a large amount of currency using little of their own capital while borrowing the rest

Obtaining this MT4 forex trading account will enable you to borrow money from the broker to trade forex lots with; the lots are worth $100,000.

The amount of borrowing power your trading account gives you what is called "leverage", & is usually expressed as a ratio - a ratio of 100:1 leverage means you can control resources worth 100 times your deposit amount.

What this means in Forex terms is that with 1 % margin in your forex trading account you can control one standard lot/1 contract worth $100,000 with a $1,000 deposit.

However, Trading this margin forex account increases both potential for profits as well as losses. In Forex you can never lose more than you invest, losses are limited to your deposits and usually brokers will close a trade which extends beyond your deposit amount by executing a margin call. Traders must therefore try to keep their margin level above that required. By using forex money management rules & keeping your used forex leverage below 5:1.