Required Margin Calculator

What is a required margin calculator?

The Axi margin calculator is a trading tool that will help traders determine how much margin is required to open a trading position.

How does our margin calculator work?

To calculate the margin required to open a trade, the calculator will multiply trade size with the price of the instrument, and then divide by leverage.

The calculation formula

For lots:

[(Number of lots * Notional value of lot * Price of product) / Leverage Factor] *Account currency exchange rate
(Only if the account currency is different from the denominated currency of the product)

For cash/units:

(Units * Price of product) / Leverage Factor] *Account currency exchange rate
(Only if the account currency is different from the denominated currency of the product)

The leverage factor is calculated as follows (Margin % and Initial Margin Rate % can be found in the product schedule):

For products that use account leverage:
Account leverage / (Margin % * 100)

For products that have fixed leverage:
1/Initial Margin Rate %

How to use the calculator

To calculate the margin required to open a trade, select your trading instrument and account base currency, specify your trade size and leverage, and click “Calculate”.

Example

Trading instrument: EURAUD
Account base currency: USD
Trade size (in lots): 2.5
Leverage: 500
Exchange rate: 1.5495
[(2.5 * 100,000 EUR * 1.5495 AUD per EUR)/500] = 774.74 AUD.
Prices at time of calculation

Converting this to account currency:

774.74 AUD * 0.66407 USD per AUD = 514.48 USD.
Prices at time of calculation

To open the trade, you would require a minimum margin of 514.48 USD
in your account.

Frequently Asked Questions

A margin is the amount of capital required to open and maintain a new position.

Leverage is, essentially, borrowed capital from the broker to the trader. A common tool when trading forex or CFDs, leverage allows traders to hold larger positions that they would, otherwise, not be able to deposit. For instance, a leverage of 1:10 would allow a trader to trade a position 10 times greater than the capital deposited in their trading account.

Required margin is the amount of capital in your trading account that is “locked up” when you open a new trade.

A “lot” is the number of currency units that a trader buys or sells. There are four lot sizes – standard, micro, mini, and nano – with the standard lot size equal to 100,000 units of currency.

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