MT4 Stocks Margin Level Percentage Calculator
Margin Level Stocks Calculator - MT4 Stocks Margin Level Percentage Calculator - Calculating Stocks Margin Example on MetaTrader 4.
This learn stocks tutorial will explain What is Stock Margin Requirement in stock trading & how it is calculated on the MT4 platform.
Examples of How to Calculate Margin Level Percentage on MetaTrader 4
If stocks 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 stocks capital is $1,000 after stocks leverage you control $100,000 - $1,000 is what percent of $100,000 - it is 1%) that is your stocks margin requirement for your stocks account.
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
MT4 Stock Margin Calculator - MT4 stocks margin level percentage calculator Example
Now if Your Stock Leverage is 100:1
When trading if you have $1,000 and use option 100:1 & buy 1 Mini lot for $10,000 your margin on this transaction is $1000 dollars in your stocks Mini stocks 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 stocks trades automatically once your $1,000 has been taken by the stocks market.
But this is if your stocks broker has set 0% Stock Margin Requirement before closing your stock trades automatically.
For 20% margin requirement before closing your stock trades automatically, then your trade transactions will be closed once your balance gets to $200
For 50% margin requirement of this level before closing your stock trades automatically, then your trade transactions will be closed once your balance gets to $500
If your stock 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% are not suitable for you at all, choose those set 50% or 20% margin requirements, in fact, those brokers that set it at 20% are some of the best because the likely hood they closeout your trade is reduced as displayed in the examples above.
MT4 Stocks Margin Level Percentage Calculator
In the above MetaTrader 4 stocks screenshot example, the trader is using $2683.07, total controlled amount is $268,307, but stocks account equity is $16,116.55, therefore used stock leverage is ( $268,307 divide by 16,116.55 ) = 16.64 : 1
16.64 : 1 Used Stocks 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 MetaTrader 4 stock platform automatically - The MT4 Stocks Platform will display this as "Stock Margin Requirement", This will be displayed as a percentage the higher the percent the less likely your trades are to get closed.
For Example if - (using a broker that requires 20% margin requirement)
Using 100:1 stocks leverage
If stock leverage is 100:1 & you transact 10 Mini Lots, equals to $100,000
$100,000 dollars divide by 100:1, your used trading capital is $1000
Calculation:
= Capital Used * Percent(100)
= $1,000/$1000 * Percent(100)
Stock Margin Requirement = 100 %
Investor has 80% above what is required margin level amount
Using 10:1
If stocks 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)
Stock Margin Requirement = 1000 %
Investor has 980% above what is required margin level amount
Using 1:1 stocks leverage
If stocks leverage is 1:1 & 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 * Percentage(100)
Stock Margin Requirement = 10,000 %
Investor has 9800% above what is required margin level amount
