Categories
1. Basic interview question

How do I calculate my margin?

Your margin requirement equals the units of the base currency divided by your leverage.

Example 1: trade of 1 lot on GBPUSD with leverage of 1:100 1 lot = 100,000 units of base currency, in this case GBP100,000 100,000 / 100 = GBP 1,000 margin requirement.

Example 2: A trade of 1 lot on GBPUSD with leverage of 1:500 1 lot = 100,000 units of base currency, in this case GBP100,000 100,000 / 500 = GBP200 margin requirement.

Leave a Reply

Your email address will not be published. Required fields are marked *