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Calculate required margin MT4


DGRL

Question

Dear forum members,

 

I want to know how to calculate the required margins (when using MT4)
According this site https://www.ig.com/au/learn-to-trade/margin-explained you need to do it as followed
1467798250060.png

How do i calculate the total value of your trade?
I bought a contract last week and i know my margin req.
It was 112.03 

 

Since i know the outcome i tried it myself but with provided info of IG i cant seems to get this outcome

The contract i bought was a long option for US30 size 0.01 (MT4) 
the value of 1 contract is 10 so 0.01 should be .1
The opening price when i went long was 25332.3
With the formula above i would say that the total value would be  0.1 X 25332.3 = 2533.23
The margin requirement for US30 is 0.5%

when calculating 2533.23 X 0.5% = 12.66615

Can someone please help me to get the figures right because even if i made a mistake with the place of the dot it would be 126 and not 112

Kind regards and thanks in advance

 



 

 

 

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Guest pepi2017

The best way to calculate a bid is to remember , too assess capital of account . Alocate 1/3 of fund's for trading ,2/3 is for fee's and the 3/3 is too float too keep the account opened..

           Yours faithfully 

           Mr C O'Loughlin.

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Hi @DGRL,  the total value of your trade is as you have done, the contract size x the contract value x the asset price. I was highlighting that there are some alternative ways used to work out margin as is stated in your linked page, one being if a guaranteed stop was used, if you have a 'limited risk' account for example all trades will have a guaranteed stop attached. 

As @pepi2017 points out it pays to have some lee way with regards to margin as having positions closed on a margin call at short notice on a regular basis gets quite annoying.

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59 minutes ago, DGRL said:

Thanks for the reply 
I do not have a limited risk account so no guaranteed stop 

I do use Stop loss orders though

Anyway how can i have a different outcome when calculating  (ie. 126 instead of 113)

 

Are you sure you dont mix USD and Euro?

113 Euro could be the same as 126 USD?

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On 17/02/2019 at 16:58, Guest 123 said:

Are you sure you dont mix USD and Euro?

113 Euro could be the same as 126 USD?

I've tried to calculate margins since I have moved over the MT4.

 

On the IG website (international) the margin on the Dax is currently 620 pounds.

On MT4 with the size being 0.01, the margin is 138 pounds. 

I don't know how that I calculated.

 

 

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