Understanding Balance, Equity, Margin

If you notice in the Terminal window (Trade), in addition to

shows the profit you get, there are also

description of Balance, Equity and Margin.

Balance is the balance of your funds. While Equity is

the balance of funding coupled with the floating profit or loss. so the Equity

are the funds that will be accepted if all positions are closed.

                    Balance = Equity + Margin.

Now we go on the Margin. In a Terminal window (Trade)

There are two types, namely, Margin and Free Margin. The first,

The margin is the margin that have been used (used margin),

and the Free Margin is the margin that can still be used

(available margin). _

So what is a margin? Arguably

the margin is a fund that can be used for forex transactions.

Suppose in the above example, you have a standard account.

Leverage 1:100. Balance or the balance of funds of $10,000. You

opening a long position of 1 lot EURUSD price 1.2748. Then

the margin has been used is $1274.8.

This figure is obtained from 100,000 units of currency X

1.2748 = $127.480. If no, you need to leverage the funds

$127,480. But because there is a 1:100 leverage, just need the funds

1/100, namely $1,274.8 to open 1 lot EUR/USD

priced at 1.2748. This is the margin that is already in use.

           margin Forex Currency Unit = x Price x Leverage

The rest of the margin or free Margin that has not been used is

$8,885.20. This number is obtained from the Equity reduced the Margin. so

in the above example $10,160-$ 1,246.80 = $8,885.20.

                    Free Margin = Equity-Margin

While the Margin Level is the ratio between Equity and

The margin. In the example above, the Margin Level = $10160/$ 1Q74,80 X

100% = 796,98%. The smaller the number, the more this percentage

dangerous, because it would mean too many already use

the margin.

                   Margin Level = (Equity/Margin) x 100%