MetaTrader 4 Oil Margin Level Percentage Calculation
Margin Level Oil Trading Calculation - MetaTrader 4 Oil Trading Margin Level Percentage Calculator - Calculating Oil Trading Margin Example on MT4 Platform.
This learn oil trading tutorial will explain What is Oil Trading Margin Requirement in crude oil trading & how it is calculated on the MT4 platform.
Margin Level Oil Trading Calculator
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 is 1 %) that's your oil trading margin requirement for your crude oil trading account.
The oil margin example in MT4 oil Software below, the set crude oil leverage ratio is 100:1, the oil trading 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 and 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
MT4 oil margin level percent calculator Example
Now if Your Oil Trading Leverage is 100:1
When trading if you have $1,000 & use option 100:1 & buy 1 Mini lot for $10,000 your margin on this transaction is the $1000 dollars in your oil trading Mini crude oil trading account, this margin is the money that you will lose if your open trade transaction goes against you - the other $99,000 that is borrowed, the broker will close the open oil trades automatically once your $1,000 has been taken by the oil market.
But this is if your oil broker has set 0% Crude Oil Margin Requirement before closing your crude oil trades automatically.
For 20% margin requirement before closing your crude oil trades automatically, then your trades will be closed once your account trading balance gets to $200
For 50% margin requirement of this level before closing your crude oil trades automatically, then your trades will be closed once your account trading balance gets to $500
If your crude oil broker sets 100% margin requirement of this level before automatically closing your open trade transaction positions automatically, then your open trades will be automatically closed once your account balance gets to $1,000: Meaning that the trade will be closed out as soon as you execute it because even if you pay 1 pip spread your account balance will get to $990 & the needed percentage is 100% i.e. 1,000 dollars, therefore your trade orders will immediately get closed.
Most brokers don't set 100% requirement, but there are those brokers who set 100% aren't suitable for you at all, select those set 50% or 20% margin requirements, in fact, those brokers who set it at 20% are some of the best because the likely hood they close-out your trade is reduced as shown in example above.
MT4 Oil Margin Level Percent Calculation
In the above MetaTrader 4 oil trading screenshot example, the trader is using $2683.07, 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
The Margin is 600% which is 580% above the required 20% Margin requirement by the broker.
To know about this margin level which is calculated by your MT4 crude oil trading software automatically - The MT4 Oil Platform will display this as "Crude Oil Margin Requirement", This will be displayed as a percentage the higher the percent the less likely your trades are to get closed.
For Examples if - (using a broker that requires 20% margin requirement)
Using 100:1 oil trading leverage
If oil leverage is 100:1 & you transact 10 Mini Lots, equals to $100,000
$100,000 dollars divide by 100:1, your used capital is $1000
Calculation:
= Capital Used * Percent(100)
= $1,000/$1000 * Percent(100)
Crude Oil Margin Requirement = 100 %
Investor has 80% above what is the required margin level amount
Using 10:1
If oil leverage is 10:1 & you transact 1 Mini Lot, equals to $10,000
$10,000 dollars divide by 100:1, your used capital is $100
Calculation:
= Capital Used * Percent(100)
= $1,000/$100 * Percent(100)
Crude Oil Margin Requirement = 1000 %
Investor has 980% above what is the required margin level amount
Using 1:1 oil trading leverage
If oil leverage is 1:1 and you transact 0.1 Mini Lot, equals to $1,000
$1,000 dollars divide by 100:1, your used trading capital is $10
Calculation:
= Capital Used * Percent(100)
= $1,000/$10 * Percent(100)
Crude Oil Trading Margin Requirement = 10,000 %
Investor has 9800% above what is the required margin level amount
