Margin
Monitor and manage margin level in real time using the Margin widget to prevent overexposure
Summary
This widget helps you monitor margin parameters and statistics.
Fields
All values are in displayed in conversion to the platform root asset:
Your margin level
The ratio of your funds to a used collateral, in percents. This value is calculated as Equity / Used margin × 100%.
Possible values:
Empty: No open positions.
Low risk: Everything is ok.
Margin call: Your margin level fell below the set Margin call value. You received a notification urging you to increase the margin level to avoid a Stop out. Remember that if you ignore this warning, the margin level may continue to decrease. During the Margin call, you can only close existing positions; opening new positions isn’t possible.
Stop out level: Your margin level fell below the set Stop out value; the platform started a process of liquidating your positions. This process continues until the margin level exceeds this required value. ANY currently open position can be closed regardless of its side and volume.
Margin balance
The total amount of your funds that can be used as a collateral for CFD trading.
It’s calculated as Σ(TotalAmountX × MarginRatioX × Rate X/RAT), where:
TotalAmountX is the the total amount of the asset X, including both available and locked funds.
MarginRatioX is the Margin ratio set for the asset X.
Rate X/RAT is the constantly updated rate of the asset X to the platform root asset.
The Margin balance is continually recalculated based on price fluctuations. An increase in the prices of assets boosts available Balance & Free margin. Conversely, a decrease in asset prices may reduce the available Balance and Free margin. Additionally, a decline in the prices of assets with open positions may trigger Margin calls and Stop outs.
Equity
The potential balance of your account if all your positions were closed right now.
This value is calculated as Margin balance + Unrealized PnL.
Used margin
The amount of funds that is used for maintaining all your open positions. Is opposed to the Free margin.
The Used margin for positions on a specific market is calculated using the maximum value between the total margin of long positions and the total margin of short positions: MAX(MarketPositionLong, MarketPositionShort).
Example
Step 1: Initial balance
Margin balance: $10,000
Opened positions: 0
Free margin: $10,000
Used margin: $0
Step 2: Open a long position (Leverage 1:100)
Market: CFD EUR/USD
Position size: 1 lot (100,000 units)
Current price: $1.001
Required margin: $(100,000 × 1.001) / 100 = $1,001
After opening:
Free margin: $8,999
Used margin: $1,001
Step 3: Open a long position (Leverage 1:20)
Market: CFD EUR/USD
Position size: 1 lot (100,000 units)
Current price: $1.001
Required margin: $(100,000 × 1.001) / 20 = $5,005
After opening:
Free margin: $3,994
Used margin: $6,006
Step 4: Open a short position (Leverage 1:100)
Market: CFD EUR/USD
Position size: 9 lots (900,000 units)
Current price: $1
Required margin: $(900,000 × 1.001) / 100 = $9,009.
The system verifies that upon opening this position, the MarketUsedMargin remains valid by satisfying the condition: MarketUsedMargin = MAX(MarketPositionLong, MarketPositionShort) = MAX(6,006, 9,009) = 9,009. Since the condition is met, the position opens.
After opening:
Free margin: $991
Used margin: $9,009
As a result, you can open multiple opposite positions without significantly increasing the Used margin. Furthermore, closing positions never increases the Used margin.
Free margin
The amount of funds that can be used for opening new positions.
Unrealized PnL
The total potential profit or loss earned from all open positions.
This value is calculated as Σ(Unrealized PnL for Long positions + Unrealized PnL for Short positions), where:
Unrealized PnL for Long positions = Position size × (Current price – Open price)
Unrealized PnL for Short positions = Position size × (Open price – Current price)
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