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
