Calculation of Balance, Equity, Margin, Free Margin

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1:

Open P/L = p stand for profit and L stand for loss

2:

Balance = Balance in my account on closed position

3: Equity = Balance in my account on opened position (open


P/L plus or minus = equity) Equity is the current balance in my
account.
4: Margin = Money used toward my open position (deal size *
deal rate divided by leverage)
Example- bought EUR/USD at 1.3750 with lot of 0.10
(10000 unit), so 10000*1.3750/200 as currency leverage is
1:200 so margin will be 68.75.
5: Free Margin = How much money I have left to open positions
Equity margin = free margin
6: Margin Level = If your margin level reaches 20%, your open
positions will be closed automatically. Its better if margin level
stays above 100%
Equity (divided) Margin = Margin Level %
7: Leverage = it is your purchasing power. Example if you have
$100 you can open 0.20 maximum lots in currency pair. Like that
if you have $200 you can open 0.40 maximum lots.

O.01
0.02
0.05
0.09
0.10
1.00

= 1000 unit
= 2000 unit
= 5000 unit
= 9000 unit
=10000 unit
= 100000 unit

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