long position (you buy 1000 against USD 1,431.4 from your 10,000 account has to be locked in this position as collateral. The threshold for measuring the post-trade margin ratio is set by the broker usually at 120. It means that the bridge will calculate what the used margin will be in the MT4 account after the new trade opens. Robust Charting Technical Analysis, employ a full range of technical indicators and charting tools to analyze market trends. As a result, they dont know how to calculate the size of their positions. Behavioral cookies are similar to analytical and remember that you have visited a website and use that information to provide you with content which is tailored to your interests. Therefore, to buy 100,000 (one lot you should pay only 1000. Lets say you have a 10,000 account and you have some open positions with the total required margin of 900 and your positions are 400 in profit. It helps the traders to trade the larger amounts of securities through having a smaller account balance.
This eBook shows you the shortest way to acheive Financial Freedom: What Is Leverage? If the the MT4 account margin level is within the acceptable limits, it lets the trade through. Different brokers have different limits and policies for this too. 100 margin call level means if your account margin level reaches 100, you can still close your open positions, but you cannot take any new positions. If the account equity is less than 120 of the post-trade used margin, the trade will fail margin check and will be automatically cancelled by the bridge MT4 dealer accounts. This website uses Google Analytics, a web analytics service provided by Google, Inc. For example, when you have a 5000 account and you have no open positions, your account balance is 5000. Once you leave the website, the session cookie disappears. This is how the terminal looks when you have no open position: And this is how it looks when having an open position: This can be different in other platforms. Therefore, all the money you have in your account is free. EUR/USD rate:.4314 100,000.4314 143,140.00 Therefore: One lot EUR 143,140.00 Leverage: 100:1 Margin 143,140.00 / 100 1,431.40 Therefore, to have a one lot EUR/USD position with a 100:1 account, a 1,431.40 margin is needed, while the EUR/USD rate.4314.