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Margin Call Calculation


padi

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Hi,
 
I am a beginner currency trader, focussing only on USDJPY.
I am trying to calculate total money I need (as potential useable margin and margin), to accommodate market swings.
 

Margin call calculation for USDJPY.

Margin required is 0.5%.

For minimum position size of 50K, minimum margin required is 0.5%, that will be 1:200, that will be 250USD.

 

Goal calculation = how much movement and how much margin required.

(right now price is around 130.00).

Movement if 113 entry, move down to 112.500 = 50 pips. 

 

>50 pips needs how many dollar of margin?

>1 pips = 0.01 JPYUSD - 1 JPY = 0.009 USD - 1 pips = 0.09/10 JPY = 0.009 JPY or 0.00008 USD,

>50 pips =  0.004 USD.

With leverage of 1:200, 50 pips = 0.8 USD.

Lot size = 0.05 x 100,000 = 50,000

0.8*50K = 4K

Margin required on 4K = 0.5% = 20USD. <is this correct?


 

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