Big thanks to you!

But how to calculate Required margin to open Standard 0.01lot = USD 2.63 ?

[(BASE) / (Home Currency)] * [units] / [leverage]

Home Currency = USD
Currency Pair = EURUSD
Base = EUR; Quote = USD
Base / Home Currency = EUR/USD = 1.3171
Units = 1000 (0.01lot) [10k units = 0.1lot] [100k units = 1lot]
Leverage = 1:500

Then, margin used:
= (1.3171 * 1000) / 500
= 2.6342 USD
= 2.63 USD

This post has been edited by zDarkForceSz: Sep 5 2013, 11:27 PM

that is 100% correct, but do take note that some brokers nowadays used a fixed calculation for the margin requirement ie: margin required = 100,000 / leverage for every standard lot round turn

We trade often, sometimes agak-agak can know how much is the margin required to open a position.

FxPrimus use that calculation?
I know is more unfair to be calculated that way to maintain the Margin Level.

Thanks master!


I think so too because my margin is fixed at 5 USD when I open a 0.01 lot trade.

Which broker are you using?

Your leverage is probably 1:200?

As long as you manage your risk, margin shouldnt be too much of an issue

This post has been edited by sebastian.twz: Sep 5 2013, 11:53 PM

FXPrimus

Err I forgot about my leverage, not sure if it is 1:50 or 1:200

then is 200 by using the 100,000/leverage calculation.

most active user here using fxprimus.

Ya I think so.

Thank you everyone for the answer!

next move ..wait for it ...bull me or bear me .

tip of the day : never ride market trend after news came ...u will miss the `train`

Miss the train never mind. Don't because miss the train double up your margin become gamble.

Miss train nvm..don't take the wrong train haha

hehe for news like NFP. If I want to trade, I will keep my fund all in FxPro Vault (aka safe deposit) then remain the required margin to open 0.1lot .
Even if lose, I lose that margin only~
Slippage? Don't worry, my fund is inside Safety Vault, FxPro will clear the negative balance of my trading account. HAHA

Ah I see..anyway what u mean by slippage? And usually which website u use to watch the news?

Normally with ECN/STP broker, when the market with ultra high volatility, the price shoot up/down in a sec.
lets say EurUsd I buy @ 1.3200, TP @ 1.3300, SL @ 1.3100.

NFP movement is about 60-120pips a min
NFP come out with GREEN

EurUsd drop and hit my SL, but because too high volatility,
The price keep on dropping faster, maybe stop @ 1.3090. Slippage, I lose more than I initially plan to lose. another 10pips lose.

Lucky my train still green color XD

# A trend is your friend till it bends XD

Can't imagine a 100pips lost..hopefully not gonna happen to me anytime haha.

then keep yourself out 8.30pm tonight on USD pairs.

and that , we need to learn emotion 101 .. never put additional trade if floating .. it will affect your judgment , just wait for right moment .

trade what you see , not what you think.