What is Margin in MT4?

Examples of what is margin on the MT4 platform and explanation of Stocks Margin, Stocks Margin Required, Stocks Equity, Used Stock Margin and Stock Free margin.

Stocks Margin, Margin Required, Equity, Used Stock Margin & Free margin

What's Margin Required? : It is amount of money your stocks broker requires from you to open a position. It is expressed in percentages.

What is Equity? : It is total amount of capital you have in your stocks trading account.

What is Used Stock Margin? : amount of money in your account that has already been used up when buying a stocks lot, this contract is 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've borrowed, you must maintain this usable margin for your account as a security to allow you to continue using this stocks leverage he has given you.

What is Free Stock Margin? : amount in your account which you can use to open new trades. This is amount of money in your account which hasn't yet been stocks leveraged because you've not yet opened a transaction with this money - this money also is very important for you as a trader because it enables you to continue holding your open trades as will be explained below.

Examples of What's Stock Margin on MetaTrader 4

The stocks margin example in MetaTrader 4 stocks Platform below, the set stock leverage 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 stocks capital, this 1% is equal to $2683.07, if 1% is equal to $2683.07 then 100% is $268,307

MetaTrader 4 Stocks Leverage Margin Calculation - Margin Level on MT4 Explained