Trying to set up rules for my own trading robot, C# written. Recently connected to a test account but it seems that calculations are not what I have estimated when writting the system.
Would like to know how is “Usd Mrg” field calculated for a new position in FXCM trading station web. Not sure what Amount represents, if money or shares.
For example, EUR/USD, Amount: 10 K, used margin 75 USD. In case it’s number of shares, at an ASk price of 1.33397 it results in $13,339.70 USD. Divided by 75 for obtaining the leverage is 177.7 which does not make sense for a leverage value.
In the other hand if Amout is money, it will result on a total of 7497 shares but lavarage value still doesn’t make sense.
The Used Margin is the amount of money in dollars you have to set aside in order to keep your trade open. This amount depends on two factors:
[ol]
[li]The size of your trade (Amount K)
[/li][li]The minimum margin requirement (MMR) for the currency pair you are trading
[/li][/ol]
For example, if you look under the Simple Dealing Rates tab on Trading Station, you will see that the minimum margin requirement for EUR/USD is 7.50. That means for each 1k micro lot you trade, you have to set aside $7.50 as used margin.
Since you were trading a 10k position, you would have to set aside $75.00. If your account equity fell below $75.00, you would no longer have enough money to meet the minimum margin requirement for this trade. The system would automatically close out your position to prevent further losses.
That is how FXCM can offer our clients a No Debit Balance Policy. This means that even though you’re trading on leverage, your risk is limited to the money in your trading account. You could never owe money due to trade losses.
If you have further questions about FXCM, feel free to ask me in the Broker Aid Station.
