How Is the Minimum Margin Required Calculated?
The minimum margin required is the amount of capital you need in your account to open a position, and it varies depending on the market and instrument you're trading.
To calculate it, use this formula:
Margin Required = (Contract Size × Lot Size × Open Price) / Leverage
Example
Let’s say you’re trading US30 with the following:
- Contract Size: 10
- Lot Size: 0.01 (minimum)
- Open Price: 37,337
- Leverage: 1:200
Apply the formula:
(10 × 0.01 × 37,337) / 200 = 18.67 USD
So, the minimum margin required would be $18.67 to open that position.