Having trouble with margin

I just wanted ask if it is worth calculating margin requirements etc… before taking a trade.

Im not sure if its essential to know before taking a trade, but I assume it is.

I am having trouble with calculating margin

If I wanted to open up a micro lot of 0.6 and trade the EUR/USD what is my requiremed margin? Lets say my leverage ratio is 30:1 as well.

Ive tried calculating it myself but I didn’t get it right here is my working

Acct balance X leverage ratio

2,000 x 30 = 60,000

60,000 x notinal value

60,000 x 1.09195 = 65,517

65,517 x required margin (%) (2% for eur/usd)

65,517 x 2% = $1,310.34. Is this correct, if not were have I gone wrong?


UPDATE

is this correct. I’ve used a calculator

Where does the 2 percent come from?

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It shouldn’t be, really, no. (If it is, you’ve either done something terribly wrong at an earlier stage, or your position-sizing is perhaps really enormously inflated as a proportion of your account balance.)

I’m not sure how to answer your other questions: it’s one of those (common-in-forums) situations where you know that someone’s misunderstood something, somewhere along the line, but can’t tell exactly what, from what they’ve said - and in these circumstances it’s really easy to deepen someone’s confusion rather than actually resolving it! :grimacing:

I also don’t quite understand where the 2% comes from. Are you assuming that the broker has a 2% margin requirement on the instrument you’ve chosen to trade? (That might be true, I suppose?)

Does this link help?

Margin is (1 / 30) * 100 = 3.33%, your calculations use 50x leverage which is 2%.

Does the notional value matter, it’s everything in the financial markets without which you fail.

I posted all the numbers recently but it was removed, you can understand why, if everyone knew the correct numbers with notional value (which also exists on stocks at 1:1 if you target wrong profits).

  • they would never open a brokerage account
  • they would never place a trade
  • they would never buy any training

:grinning:

It’s almost too ridiculous to dignify with a serious response, but if you honestly imagine that’s why the forum’s deleting your posts, you should be seeking professional help. :roll_eyes: :thinking:

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The 2% is from the babypips lesson

I’m confused. I’m trying to figure out how much capital I’ll have to have in my account to keep the postion open

Its okay I’ll use the calculator. Do you know the calculations are correct?

If you truly believe that doesn’t happen in life perhaps you are making that advice to the wrong person.

You used the myfxbook calculator, your calculations are correct except you used 2% which is 1:50 and not 3.33% which is 1:30, using 3.33% your calculations come out to the same as myfxbook.

i got no idea what anyones saying about that so dw lmao

okay thank you