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Margin Calculation on EUR/USD with AUD base currency


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Hello,

I'm trying to figure out the Margin Required to create a BUY position on EUR/USD with my base currency in AUD.

However - I really don't know how to get the calculation right, can you please help?

Please see the attached screenshot EURUSD_1.png and EURUSD_2.png:

  • Size: 5
  • Contract Size: EUR 10,000
  • Price: 1.12208 (EUR/USD)
  • Value of one point: USD 1
  • Margin: 0.5%
  • Margin Required (USD): US$108.01

My calculation:

Quote

Margin Required = Size * Contract * Price * Margin

= 5 * 10,000 * 1.12208 * 0.5%

= 280.52 (far from US$108.01)

I understand to get the Margin Required in AUD - it would require currency conversion from USD to AUD.

However - I cannot even get the calculation right for the Margin Required (USD) : USD108.01.

Can anyone help me how to get that figure (ie. USD108.01)?

Below is more information about EURUSD mini pair. (if it helps).

 

Please let me know

 

Thank you

Quote

{
    "instrument": {
        "epic": "CS.D.EURUSD.MINI.IP",
        "expiry": "-",
        "name": "EUR/USD Mini",
        "forceOpenAllowed": true,
        "stopsLimitsAllowed": true,
        "lotSize": 1.0,
        "unit": "CONTRACTS",
        "type": "CURRENCIES",
        "controlledRiskAllowed": true,
        "streamingPricesAvailable": true,
        "marketId": "EURUSD",
        "currencies": [{
            "code": "USD",
            "symbol": "$",
            "baseExchangeRate": 0.68841,
            "exchangeRate": 0.66,
            "isDefault": false
        }],
        "sprintMarketsMinimumExpiryTime": null,
        "sprintMarketsMaximumExpiryTime": null,
        "marginDepositBands": [{
            "min": 0,
            "max": 115,
            "margin": 0.5,
            "currency": "USD"
        }, {
            "min": 115,
            "max": 1150,
            "margin": 1,
            "currency": "USD"
        }, {
            "min": 1150,
            "max": 1725,
            "margin": 3,
            "currency": "USD"
        }, {
            "min": 1725,
            "max": null,
            "margin": 15,
            "currency": "USD"
        }],
        "marginFactor": 0.5,
        "marginFactorUnit": "PERCENTAGE",
        "slippageFactor": {
            "unit": "pct",
            "value": 50.0
        },
        "limitedRiskPremium": {
            "value": 1.08,
            "unit": "POINTS"
        },
        "openingHours": null,
        "expiryDetails": null,
        "rolloverDetails": null,
        "newsCode": "EUR=",
        "chartCode": "EURUSD",
        "country": null,
        "valueOfOnePip": "1.00",
        "onePipMeans": "0.0001 USD/EUR",
        "contractSize": "10000",
        "specialInfo": ["DEFAULT KNOCK OUT LEVEL DISTANCE", "MIN KNOCK OUT LEVEL DISTANCE", "MAX KNOCK OUT LEVEL DISTANCE"]
    },
    "dealingRules": {
        "minStepDistance": {
            "unit": "POINTS",
            "value": 5.0
        },
        "minDealSize": {
            "unit": "POINTS",
            "value": 1.0
        },
        "minControlledRiskStopDistance": {
            "unit": "POINTS",
            "value": 5.0
        },
        "minNormalStopOrLimitDistance": {
            "unit": "POINTS",
            "value": 2.0
        },
        "maxStopOrLimitDistance": {
            "unit": "PERCENTAGE",
            "value": 75.0
        },
        "marketOrderPreference": "AVAILABLE_DEFAULT_OFF",
        "trailingStopsPreference": "AVAILABLE"
    },
    "snapshot": {
        "marketStatus": "TRADEABLE",
        "netChange": 0.00034,
        "percentageChange": 0.03,
        "updateTime": "03:06:40",
        "delayTime": 0,
        "bid": 1.12205,
        "offer": 1.12211,
        "high": 1.12247,
        "low": 1.12079,
        "binaryOdds": null,
        "decimalPlacesFactor": 5,
        "scalingFactor": 10000,
        "controlledRiskExtraSpread": 2
    }
}

 

EURUSD_1.PNG

EURUSD_2.PNG

  • Like 1
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  • 1 month later...
29 minutes ago, pelham said:

I am new to IG and just want to understand how IG calculates our profits (or losses) on FX trades. For example, on the trade I made yesterday (details below) can someone explain to me how the final A$522.82 is arrived at?

image.png.d3378e678f864092abcb074059162904.png

image.png.baa5c5978a30448b27fa2f81ef3139e2.png

Hi, was that on the demo platform?

it looks like either size was out by a factor of 10 or the points gain was.

image.thumb.png.9d5516d1fceda1482ef4cf5d545b00a1.png

  • Like 1
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