How is Used Stock Margin Calculated?

Used Stocks Margin

What is Used Stock Margin? : amount of money in your trading account that has already been used up when buying a stocks trade order, this stocks order is the one that is displayed in open trades. As a trader you can not use this amount of money after opening a trade transaction because you have already used it and it is not available to you.

In other words, because your stocks 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 stocks leverage that the broker has given to you.

Example of How is Used Stock Margin Calculated on MT4?

The stocks margin example in MT4 stocks Platform below, the set stock leverage ratio is 100:1, the stocks 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 equal to $2683.07, if 1% is equal to $2683.07 then 100% is $268,307

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