Margin is a margin that is deducted when an order is opened and returned when the order is closed. Let me give you the following example: example:
- Leverage 1:1 To open Order 1 Lot, we must spend $100,000 as margin margin = 100,000 USD.
- But if leverage of 1:100 is used, the margin will be reduced by 100 times from the need to place a margin of 100,000 USD, only $1,000, margin = 1,000 USD.
Margin calculation formula
Margin = Price at the time of opening x Lot x Contract size / Leverage In addition to Margin, there are other values to know:
- Balance is the account balance.
- Equity is the current port value.
- Free margin is the remaining amount that can be purchased.
- Margin level Remaining percentage relative to leverage level If less than 60% is notified, if as low as 0%, Order is forced to close or assume that the port is cleared.