Margin is an amount required to secure a position you would like to open. It allows you to properly manage your transaction and determine the size of the lot and leverage, so as not to exceed the balance of your trading account. This is crucial to avoid margin calls or stop outs.
Margin requirements are calculated differently depending on trading platform and asset class. Respective methodologies are described below.
For the MT4 platform the following apply:
Forex instruments calculate margin requirements using the Forex formula, as follows: Lot x Contract Size / Leverage x Percentage / 100.
CFDs on Metals, CFDs on Indices, CFDs on Energies, CFDs on Cryptocurrencies and CFDs on Commodities calculate margin requirements using the CFD-Leverage formula, as follows: Lot x Contract Size x Market Price / Leverage x Percentage / 100.
CFDs on Shares calculate margin requirements using the CFD formula, as follows: Lot x Contract Size x Market Price x Percentage / 100.
For the MT5 platform the following apply:
Forex instruments calculate margin requirements using the Forex formula, as follows: Lot x Contract Size / Leverage x Percentage.
CFDs on Shares, CFDs on Cryptocurrencies, CFDs on Commodities, CFDs on Metals3 (XALUSD, XCUUSD, XNIUSD, XPBUSD, XZNUSD), CFD on AUS200., CFD on CHN50. and CFD on WTI. calculate margin requirements using the CFD-Leverage formula, as follows: Lot x Contract Size x Market Price / Leverage x Percentage.
CFDs on Metals (except listed above), CFDs on Indices (except listed above) and CFDs on Energies (except listed above) calculate margin requirements using the CFD formula, as follows: Lot x Contract Size x Market Price x Percentage.
Lot - is the MetaTrader volume of your position
Contract Size - is the actual number of units of an asset in your position
Leverage - is the leverage level applicable to your trading account (subject to ESMA limitations for retail clients)
Percentage - is the margin percentage applicable to an asset class and/or instrument
Market Price - is the price at which your position is placed
The calculators are supplied by TeleTrade as auxiliary tools serving informational purposes solely. Data for the calculations is sourced from TeleTrade's trading servers and there could be delays before it appears on the website. Due to the possible feed delay and the rounding of values, the displayed calculation results may deviate from the actual parameter values applicable in the market.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.