Margin is the deposited funds held as collateral to cover any potential losses from adverse movements in prices. Margin requirement is set for each account and affects the number of units you can open and sustain.
Minimum margin requirement offered by MG Financial is 1%.
Under the percentage based margin, the required margin for all accounts is a percentage of the numerical value of the Base Currency or the first currency in the pair.
For example, 1% of 1 unit USD/JPY is $1,000 (1% x 100,000USD=1,000USD); 1% of 1 unit EUR/USD is $1,439(1% x 100,000EUR x1.4390 = $1,439).*
Used Margin: total amount of margin being used to support open positions
Usable Margin: amount of margin remaining to place additional trades or to sustain market movements against open positions. Calculated as Equity minus Used Margin.
For examples on various scenarios of margin calculation, please click here.
In theory, with $5000 account equity in your account to trade EUR/USD, you can trade a maximum of 3.4 units ($5000 / $1439 per unit = 3.4 units).*
* Calculated at the market rate of 1.4390 at the time of conversion
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