Hello
Whats the formula to know if i have enough free margin to open a 12.5 lot size trade on NZD/JPY?
200 to 1 leverage
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NzdUsd rate is 0.61
You want to trade 1,250,000 NZD.
Divide the amount by leverage. 1,250,000/200=6250
Times that by the current NU rate 6250 x 0.61 = $3812.50 to trade that size.
Thank you for the response.
I wouldn’t need to times that by 100?
my mt4 account is showing i have $196835 in free margin and my margin percentage is at about 1000%
So i should be good?
Seems like the trade would take up very little margin if its just $3812.50
Ya that’s correct. You should be fine.
https://www.myfxbook.com/forex-calculators/margin-calculator/NZDJPY
margin = [ lot size * contract size ] / leverage
If you want the result to be in USD for example you need multiply the result by the opening price of (Base currency/USD). In your case, it’s NZD/USD.