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Technical FAQs Trading Calculation

Trading Calculation

 

1. How to calculate trading account equity?

Equity = Balance + Credit + Profit/Loss + Swap + Commission

 

2. How to calculate margin?

Margin = Notional value / Leverage

Example: 1 lot EUR/USD at 1:500 Leverage:

100,000 EUR / 500 = $200

For Metals = Volume * Contract Size * Open Price / Leverage

Example: 1 lot XAUUSD: 1 * 100 * 1542.33 / 500 = $308.47

For Shares = Volume * Contract Size * Open Price * Margin%

Example: 1 lot HK50: 1 * 1 * 26470.00 * 1% = $264.7

 

3. How to calculate free margin?

Free Margin = Equity – Used Margin

 

4. If margin is shown in percentage, what is the equivalent leverage?

0.20% = 500:1

0.25% = 400:1

0.33% = 300:1

0.50% = 200:1

1% = 100:1

2% = 50:1

 

5. How to calculate the margin level?

Margin Level = Equity/Margin Used x 100

 

6. How to calculate swaps?

Swap = Pip value * Number of lots * Swap rate * Number of nights

Example: 

$10(pip value for 1 lot of EUR/USD) * 2(number of lots) * 0.35(swap rate for short EUR/USD) * 3(Number of nights) = $21

 

7. How to calculate the value of pip?

0.0001 or 0.01 notional value(depends on the currency, 4th decimal for 5 decimal currencies and 2nd for 3 decimal currencies)

Example: 

0.0001 * 100,000(1 lot = 100,000 unit) = 10 USD

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