How is Oil Trading Margin Calculated? Oil Trading Margin is equal to Used Crude Oil Trading Margin added to Free Crude Oil Trading Margin
Oil Trading Margin = Used Crude Oil Trading Margin + Free Crude Oil Trading Margin
What is Used Crude Oil Trading Margin? : amount of money in your account which has already been used up when buying a oil lot, this contract is the one that's displayed in open trades. As a trader you can't use this amount of money after opening a trade order transaction because you have already used it & it isn't available to you.
In other words, because your oil broker has opened up a position for you using the capital you have 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 Crude Oil Margin? : amount in your account that you can use to open new trades. This is the amount of money in your trading account that has not yet been oil trading leveraged because you have not yet opened a trade with this money - this is also very important for you as a investor because it enables you to continue to hold your open trades as will be explained below.
Example of How is Oil Margin Calculated on MetaTrader 4?
The oil margin example in MT4 oil Software below, the set crude oil leverage ratio is 100:1, the oil margin is equal to oil trading used margin plus oil trading free margin.
Oil Trading Margin is equal to Used Crude Oil Trading Margin + Free Crude Oil Trading Margin
Oil Trading Margin - $16,116.55
Oil Trading Margin is equal to Used Crude Oil Trading Margin + Free Crude Oil Trading Margin
$16,116.55 = $2683.07 + $13,433.48
Used Crude Oil Trading Margin - $2683.07
Oil Trading Margin used to open trades in MetaTrader 4 platform example above
Free Crude Oil Trading Margin - $13,433.48
Free Oil Margin that can be used to open new crude oil trades in MetaTrader 4 platform example above.
Oil Trading Margin is equal to Used Crude Oil Trading Margin + Free Crude Oil Trading Margin
To Know More about Oil Leverage & Margin - How to Read the Topics Below:
Oil Trading Leverage & Margin Explained
