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Thread: Margin Question

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    Default Margin Question

    When I signed up for my micro account I selected 500:1 leverage. I thought that meant that for each 1k (micro lot) traded that would be $2.00 needed to secure it. For example on my **** micro account i need $2.50 available for each 1k and I have 400:1 leverage there. Here, metatrader is showing my margin as based on the price of the currency i am buying. This is making it rather hard to trade.

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    Default

    Quote Originally Posted by JasonB824 View Post
    When I signed up for my micro account I selected 500:1 leverage. I thought that meant that for each 1k (micro lot) traded that would be $2.00 needed to secure it. For example on my **** micro account i need $2.50 available for each 1k and I have 400:1 leverage there. Here, metatrader is showing my margin as based on the price of the currency i am buying. This is making it rather hard to trade.
    Hi,

    At FXOPEN the margin needed to open pair are based on the "original margin requirement formula" to open pair.

    So the formula are like this

    Price x Contract size or lot / leverage = margin needed to open pair


    Micro account

    example euro/usd - leverage 1:500 - 1lot - 1.4100$ x 1,000 / 500 = 2.82$ margin needed to open pair

    example euro/usd - leverage 1:400 - 1lot - 1.4100$ x 1,000 / 400 = 3.52$ margin needed to open pair

    example usd/jpy - leverage 1:500 - 1lot - 90.24yen x 1,000 / 500 = 180.48yen / 90.24 = 2$ margin needed to open pair

    Actually this is basic forex. More simple, reasonable and the actual/original how to calculate margin needed to open pair.

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    Default

    Well I still think mine is not coming out right.

    1 lot (1k) at 1.4133.

    They gave me a margin req'd of 1413.30 ($14.30)

    I definitely selected margin of 500:1 (because on a micro you kind of need that to get started).

    Using the aforementioned formula:

    1000 x 1.4133 = 1413.30/500 = $2.82

    So basically I am getting 100:1 to margin instead of what I signed up for.

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    Director of FXOpen Aus FXOjafar's Avatar
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    Default

    Quote Originally Posted by JasonB824 View Post
    Well I still think mine is not coming out right.

    1 lot (1k) at 1.4133.

    They gave me a margin req'd of 1413.30 ($14.30)

    I definitely selected margin of 500:1 (because on a micro you kind of need that to get started).

    Using the aforementioned formula:

    1000 x 1.4133 = 1413.30/500 = $2.82

    So basically I am getting 100:1 to margin instead of what I signed up for.
    Are you taking into account the increased margin requirements this week due to end of year conditions?
    http://forum.fxopen.com/showthread.php?t=46941

    It will be back to normal next week.
    Jafar Calley - Director
    FXOpen AU Pty Ltd
    Level 26 • 1 Bligh Street
    Sydney NSW 2000
    Australia
    AFSL:412871 ABN:61 143 678 719
    http://www.fxopenaus.com

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