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Calculating maintenance margin


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Hi all,

I'm struggling to find a page on the site where it gives an example of how the maintenance margin would be calculated for Forex.  My understanding is you calculate the margin at position open, then if it moved against 5 points you calculate this new margin the same as if it was the open price.  Then the difference between the two values is the additional margin requirement.  As an equation would look something like this:

position size £30 x 13400.0 (US/GBP value) = £402000 x 0.033 = £13266 initial margin

if market moves against 5 pips then calculate this new margin

position size £30 x 13395.0 (US/GBP value) = £401850 x 0.033 = £13261.05 new margin

The additional maintenance margin is the difference between the two £13266-£13261.05 = £4.95

So becomes £13266+£4.95 = £13270.95

It just doesn't seem like enough money to me! So must be calculating wrong, i think this is how indices work but not sure about Forex.

Thanks for the help

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