# 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.

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)?

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
},
"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": {
"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,
}
}```

• 1

If you see the first screenshot.. at the bottom it says "Resulting Position +3" while the size = 5.

This was because I had an open position on the same pair. Therefore it ruins the basic calculation.

All solved now.

• 1
• 1
• 1 month later...

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?

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?

Hi, was that on the demo platform?

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

• 1

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