MT4 Oil Trading Margin Calculator

Examples of How to Calculate Margin on MT4

If oil leverage = 100:1

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

Margin required = 1%

(1/100 *100= 1%)

"Trade Forex Trading - Please simplify because I am Beginner"

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

The oil margin examples in MetaTrader 4 oil trading Software below, the set crude oil leverage is 100:1, the oil margin which is 1% is $2683.07, therefore the total amount controlled by the 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 capital, this 1% is equivalent to $2683.07, if 1% is equal to $2683.07 then 100% is $268,307

Calculating Oil Margin on MetaTrader 4 Described

• If = 50:1 Oil Trading Leverage - Used Oil Trading Leverage & MetaTrader 4 Oil Trading Margin Calculation

Then oil trading margin requirement in MetaTrader 4 crude oil trading Platform - 1/50 *100= 2%

If you have $1,000,

1,000* 50 = $50,000.

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

(Simplify - your oil trading capital is $1,000 after oil leverage you control $50,000 - $1,000 is what percentage of $50,000 - it's 2%) that is your oil trading margin requirement on MetaTrader 4 oil trading Platform

• If = 20:1 Crude Oil Leverage - Used Oil Trading Leverage & MetaTrader 4 Oil Trading Margin Calculation

Then the oil trading margin requirement in MetaTrader 4 crude oil trading Platform - 1/20 *100= 5%

If you have $1,000,

1,000* 20 = $20,000.

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

(Simplify - your oil trading capital is $1,000 after oil leverage you control $20,000 - $1,000 is what percent of $20,000 - it is 5 %) that's your oil trading margin requirement on MetaTrader 4 oil trading Platform

• If = 10:1 Oil Leverage - Used Oil Trading Leverage & MetaTrader 4 Oil Trading Margin Calculation

Then the oil trading margin on MT4 oil trading 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 oil trading capital is $1,000 after oil leverage you control $10,000 - $1,000 is what percent of $10,000 - it is 10 %) that's your oil trading margin requirement on MetaTrader 4 oil trading Platform

What is The Difference Between Maximum Crude Oil Trading Leverage & Used Oil Trading Leverage?

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

If your oil broker has given you 100:1 Maximum Oil Trading Leverage, but you only open a trade of 10,000 dollars on MT4 oil trading Platform then Used Oil Trading Leverage is:

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

10:1

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

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

In the above MT4 oil trading screenshot example, the trader is using $2683.07, the total controlled amount is $268,307, but oil account equity is $16,116.55, therefore used oil leverage is ($268,307 divide by 16,116.55) = 16.64 : 1

16.64 : 1 Used Oil Trading Leverage

Oil Trading Margin accounts allows traders to control a large amounts of oil trading units using trading leverage using little of their own capital while borrowing the rest

Obtaining this MT4 oil account will enable you to borrow money from the broker to trade oil trading lots with.

The amount of borrowing power your account gives you what is called " oil trading leverage", and 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 Oil Trading terms is that with 1% margin in your oil trading account you can control a trade worth $100,000 with a $1,000 deposit.

However, Trading this margin oil account increases both potential for profits as well as losses. In Oil Trading you can never lose more than you invest, losses are limited to your deposits & usually brokers will close a transaction that extends beyond your deposited amount by executing what is referred to as a margin call. Oil traders must therefore try to keep their trading margin requirement level above that required. By using oil trading money management guide-lines and keeping your used oil trading leverage below 5:1.