Margin calculations
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Thread: Margin calculations

  1. #1
    Hello

    Anybody for a formula to calculate the margin requirement

    My broker is Interactive Brokers Canada
    My account is at CAD

    EX:
    pair 35000 USD.JPY = 99.25
    CAD.Jpy = 93.38

    I Am Searching for the formula, not the answer

    Martin

  2. #2
    Quote Originally Posted by ;
    Hello Anyone for a formula to compute the margin need My broker is Interactive Brokers Canada My account is in CAD EX: pair 35000 USD.JPY = 99.25 CAD.Jpy = 93.38 I am looking for the formula, not the answer Martin
    depends upon your leverage with the broker....

    Say you're carrying a 1 lot $100,000 dollar place in a pair @ leverage of 100:1 = $1000 margin demand 200:1 = $500 etc..

    So that you will need the broker leverage for the safety (can vary depending what you're trading), the margin currency for the safety and the lot size for the safety then you can calc it.

  3. #3
    Quote Originally Posted by ;
    quote depends on your leverage with the broker.... Say you are taking a lot $100,000 dollar place in a pair @ leverage of 100:1 = $1000 margin demand 200:1 = $500 etc.. So you need the broker leverage for the security (can vary depending what you are trading), the margin currency for the security and the lot size for your security then you can calc it.
    Hello Maxdom

    For CAD.JPY the margin required by IB Canada is 31.25:1

  4. #4
    Quote Originally Posted by ;
    quote Hello Maxdom To CAD.JPY the margin required by IB Canada is 31.25:1
    okay so now you can work it out. .

    edit: are you there yet?

    Take the front currency CAD

    I will assume 100,000 components ie: 1 lot commerce dimensions

    100,000 / 31.25 = 3,200 C$

    now convert that number to your account currency

  5. #5
    Quote Originally Posted by ;
    quote ok so now you can work it all out. . Edit: Are you there yet? Simply take the leading currency CAD I will assume 100,000 units ie: 1 lot trade size 100,000 / 31.25 = 3,200 C$ now convert that amount to your account currency
    Thank you Maxdoom

    Have a fantastic day
    Martin

  6. #6
    Example of calculation:

    Ranking of 1 mio EURUSD in 1.2000
    Exposure on the account USD 1,200,000
    Profit and losses = 0
    Leverage Approved for the account 1:20
    Equity = USD 100,000
    Employed Margin = Exposure on the account / Leverage = USD 1,200,000 / 20 = USD 60,000
    Utilization of leverage Employed Margin / Equity = 60,000 / 100,000 = 60 Percent

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