# Foreign exchange margin calculation method

foreign exchange cashback forex"https://www.rtbtradein.com">cashbackforexprofitcalculator calculation method in the trading platform, the required margin all by the U.S. dollar to settle the mini account, for example, a lot that cashback forex profit calculator 10K base forexcashbackprofitcalculator transactions, if the leverage ratio is 200:1, then you need 10,000/200 = 50 base currency units, cashbackforexpipcalculator then multiplied by the current price of the currency in U.S. dollars, that is, the margin required to open a lot of positions The amount of margin will change with the market price (except for the currency pair in front of the USD) For example: First of all, the account is set up with the following conditions: $10,000 account, leverage is 100:1, and the trading contract is a standard lot, i.e. $100,000 contract. CHF, USD/CAD and so on; one is the dollar after the indirect method of currency pairs, such as GBP/USD, EUR/USD, AUD/USD and so on; there is a cross currency pairs, such as GBP/JPY, EUR/JPY, AUD/JPY and EUR/GBP and so on such transactions above these three types of currency pairs, the margin used Calculation method is different, now to explain separately: The first, the dollar in front of the direct marker currency pairs used margin = the number of contracts x the number of lots traded Example: USD/JPY price is now 8865/8868, to buy a standard lot, the margin used = 100000x1/100 = 1000 U.S. dollars if it is a mini lot, his contract is 10000, then the margin used The margin is $100, calculated according to the above method The second, the dollar in the latter indirectly marked currency pairs used margin = the number of contracts x the number of lots traded x the entry price of the currency pair Example: GBP/USD is now 16284/87, buy a standard lot, the margin used = 100000x1x16287/100 = $16284 Of course, if it is Mini lot, the number of contracts is 10,000, according to the above formula to calculate the equivalent of 16284 U.S. dollars The third, cross currency pairs used margin = the number of contracts x the number of lots traded x the crossover in / before the exchange rate distance between the currency and the dollar: GBP/JPY do a standard lot then his used margin = 100000x1x16287 (GBP/USD exchange rate)/100 = 16287 USD GBP in front, so his margin calculation, the multiplied exchange rate should be GBP/USD other classes such as EUR/JPY and AUD/JPY and so on, the method is similar Profit and loss calculation is still divided into three categories to calculate: First, the direct markup currency pairs profit and loss = (close price - open price) x the number of lots traded x the number of contracts / close price for example: USD / JPY bought at 8881, closed at 8981, made a total of 10 standard lots then his profit and loss is: (8981-8881)x10x100000/8981 = $1113461 or so Second, indirectly marked currency pairs profit and loss = (close price - open price) x the number of lots traded x the number of contracts Example: GBP/USD bought at 16275, closed at 16375 closed a total of 10 standard lots, his profit and loss is the profit in U.S. dollars The third, cross currency pairs profit and loss = (close price - open price) x number of lots x number of contracts x / after the currency pair against the U.S. dollar exchange rate Example: EUR/GBP, bought 10 lots in 09036, 09136 out of the position closed when the GBP/USD exchange rate of 16320, then his profit and loss is. (09136-09016)x10x100000x16320=16320 USD