What Is Margin?

The term, Margin means the needed amount of fund (money) which required in trading account in order to open a trading position / trading ticket. 

Free or available margin is indicated in the MT4 trading terminal section.

Margin may be calculated as follows: ((Current Market Quote * Contract Size) / Leverage) * Volume = $Margin Required

For example:

  • A trader wants to open 0.01 (10,000 base currency) lots of EURUSD at the current market quote of 1.1122 and with a leverage level of 1:1,000.
  • ((1.1122 * 10,000) / 1,000) * 0.01 = USD $0.11 required to open a 0.01 lot position.