As we know, in order to maintain an open position on the forex market a certain amount of bail is required. This amount is frozen at the opening of the transaction and returns to the account when it is closed.
Margin calculator is needed in order to calculate the required amount of margin before making a real trade.
To calculate the margin it is necessary to specify the deposit currency, select the currency pair, leverage and enter the transaction size in base currency pair units.
A standard lot in the forex market is equal to 100,000 units of base currency. That is, buying 1 lot of EURUSD pair you actually buy 100 000 Euros. In this case, if the deposit currency does not match the base currency (in this case, euro), when you open a position you need to take into account the current exchange rate. At this point, the current rate of EURUSD is 1.1408. If your deposit is kept in dollars, purchase of 100 000 euro will require $ 114 080. Given the leverage provided by the broker 100: 1, the actual amount of bail is $ 1140.8.
Once you have entered all the data on the transaction, the amount of bail will be calculated automatically.
Exchange is not required if the base currency pair is the currency of the deposit. In the case of dollar account, they are pairs:
For example, when opening a position on USDCAD with the volume of 10 000 units (0.1 lot) and a leverage of 100: 1, the margin will be $ 100.