Trading conditions


To calculate the margin, it is necessary to know the following characteristics:

* account balance and currency (1,000 USD)

* leverage (1:100)

* currency pair (EUR/USD)

* trade size (1 lot 10,000 EUR)

To assess the volume of the trade, it is necessary to know what amount of your account's currency you need. => 1 lot = 10,000 EUR

Convert 10,000 EUR in USD = 10,000 * current exchange rate of EUR/USD = 10,000 * 1.5442 = 15,442 USD

Margin is the ratio of trading volume to the leverage.

Margin = 15,442/100 = 154.42 USD

Free margin after opening a trade => 1,000 – 154.42 = 845.58 USD

For a new trade:

* leverage (1:100)

* currency pair (GBP/USD)

* trade volume 2 lots (20,000 GBP)

Trade volume = 20,000 * 1.9627 = 39,254 USD

Margin = 39,254/100 = 392.54 USD

Free margin after opening a trade => 1,000 – 154.42 – 392.54 = 453.04 USD

Margin = 546.96 USD

Featured articles

Unable to open position

Steps to be taken by clients of top broker InstaForex when it is impossible to open a position (an order)

Minimum deposit

Minimum deposit for different payment methods

Fund your account using any of the available methods