Margin Prices...

[pfunkyfize]

Hi all,
So during my first week of trading I was warned twice about going over margin with my trades. I've been using $10k demo accounts until I finally made my first $1k live account and having my trades blow up because i was trading like I was using a 10k account when I had only 1K in capital. That was a costly mistake, twice...

So I was wondering if anybody has a chart of how much certain pairs cost in margin to trade. At this point I have memorized that USDJPY trades cost 50 in margin and AUSUSD and NZDUSD are 18 in margin but I'm wondering where I can find those figures, The forex site doesn't seem to have one listed or I am looking int he wrong place.

I hope someone can point out where I can find them or figure out how to calculate them. Until then, I will keep wasting capital on making a trade just to see how much margin costs for it lol.

Thanks!

 

[Joeboy]

Margin requirements vary depending on the broker, the currency pair, and the leverage you are using.

Here's a simplified example of how margin requirements might look for a few currency pairs:

Currency Pair	Margin Requirement (per $1,000 of traded amount)
EUR/USD	$20 (2% margin requirement with 50:1 leverage)
USD/JPY	$50 (1% margin requirement with 100:1 leverage)
AUD/USD	$18 (1.8% margin requirement with 55.56:1 leverage)
NZD/USD	$18 (1.8% margin requirement with 55.56:1 leverage)

Note that this is only an example!

Since you are now trading with a smaller account, adjust your position sizes to ensure you do not exceed your available margin.

This may vary depending on your broker, so in order to answer your question I would suggest you contact your broker's customer support service and ask about this.

 

[pfunkyfize]

Margin requirements vary depending on the broker, the currency pair, and the leverage you are using.

Here's a simplified example of how margin requirements might look for a few currency pairs:

Currency Pair	Margin Requirement (per $1,000 of traded amount)
EUR/USD	$20 (2% margin requirement with 50:1 leverage)
USD/JPY	$50 (1% margin requirement with 100:1 leverage)
AUD/USD	$18 (1.8% margin requirement with 55.56:1 leverage)
NZD/USD	$18 (1.8% margin requirement with 55.56:1 leverage)

Note that this is only an example!

Since you are now trading with a smaller account, adjust your position sizes to ensure you do not exceed your available margin.

This may vary depending on your broker, so in order to answer your question I would suggest you contact your broker's customer support service and ask about this.

Thanks Joeboy, yeah after the second time when my trades got liquidated because of margin, I had taken down position sizes to like .01. Oh ok, I thought the prices for margin were a standard thing across all brokers but I apparently not.

 

[Joeboy]

Yes it depends on the broker really

 

[pfunkyfize]

So the next hurdle-

I can't believe it has been 5 weeks now that I've been testing this EA. I have found a profitable combination of 6 pairs when I go live with a $10k account. I'm trying to get my live account started with the Aussies at OX Securities and one of the questions is what leverage do I want. They go all the way up to 1:500. Since it's the max, I am gravitating to choosing that. Is this a standard leverage ratio for accounts that start with $10k+ ?

Thanks!

 

[Joeboy]

That's a tough decision to make, with that leverage you could potentially control positions worth up to $5,000,000 in the market. However, it's important to note that leverage levels can vary among brokers and depending on regulations in different jurisdictions.

 

[pfunkyfize]

That's a tough decision to make, with that leverage you could potentially control positions worth up to $5,000,000 in the market. However, it's important to note that leverage levels can vary among brokers and depending on regulations in different jurisdictions.

Does it mean that I have up to 1:500 in leverage and I certainly don't have to use that much, it's there but it's optional(?) How do I even look up the current leverage I'm using in MT5?

 

[Joeboy]

Check your chosen broker's regulation or contact their support for more detailed information

 

[scrappyjedi]

With OXSecurities you can choose up to 1:500 Leverage. Communicate with them to discuss options.

 

[Enola]

For the Margin question, at the bottom of the trading box in MT4 and MT5 there should be a grey line with a totals section in it. It should show your current Margin, free margin, account balance, profits, etc. Keep an eye on that and you will get a better feel for how much margin you are using. I recommend never going above 50% margin on a consistent basis because if a trade goes suddenly sideways, you don't want a margin call closing the trade on you. Having the excess 50% of your margin available is one safe guard that could protect you. Obviously, depending on your own strategy, you can choose whatever percentages you are comfortable with. 50% is just my comfort zone.

I can say that using a $100,000 demo trading account (fake money) has allowed me to test various settings across all charts, and a 0.01 lot size for all 52 charts for forex with an Oanda broker on MT4 costs just under $2,600 in margin. So a $3,000 account could theoretically run a 0.01 lot size on every single chart at the same time. Is it a good idea? Who knows? These are just numbers I am learning about. But the implication is that when basing it off lot size, it should scale in steps of $2,600 for each 0.01 lot size increment. 0.01 = $2,600, 0.02 = $5,200, etc.

This is my theory and has yet to be tested fully, and also is margin maximums when running the bot on every chart available. Everyone's experience may differ, but I advise using a demo account to test parameters so you can better understand your own formulas as you piece together your strategy.

 

[Joeboy]

I advise using a demo account to test parameters so you can better understand your own formulas as you piece together your strategy.

I agree 100%

 

[Belizean]

So the next hurdle-

I can't believe it has been 5 weeks now that I've been testing this EA. I have found a profitable combination of 6 pairs when I go live with a $10k account. I'm trying to get my live account started with the Aussies at OX Securities and one of the questions is what leverage do I want. They go all the way up to 1:500. Since it's the max, I am gravitating to choosing that. Is this a standard leverage ratio for accounts that start with $10k+ ?

Thanks!

would you like to share the pairs and settings. I would like to test them. are they still working?