• # How to calculate margin?

1) If USD is the base currency (USDCHF, USDJPY, USDCAD):

Margin = \$100 000 x lot size / leverage

For example, if you open 0.3 lot of USDCHF with the leverage 1:100, the following margin will be required:

\$100 000 x 0.3 / 100 = \$300

The leverage 1:200, Margin = \$100 000 x 0.3 / 200 = \$150

However, if you are using the hedging feature (hedging means that you are opening 2 orders of the same currency pair: 1 order to buy and 1 order to sell), then margin is not required for 2 orders.

For example, if you are opening buy 0.04 lot of USDCHF, you margin will be \$40. If afterwards you are opening sell 0.05 lot of USDCHF, your margin will change to \$50. All in all margin for these 2 orders will consist only of \$50 but not of \$90 (\$40 + \$50).

2) If USD is the quote currency (EURUSD, GBPUSD) the required margin will be always different.

Margin= current quote × lot size x \$100 000 / leverage

For example, if you open 0.05 lot of EURUSD with a current quote 1.2706 with the leverage 1:100, the following margin will be required:

1.2706 x 0.05 x 100 000 / 100 = \$63.53

The leverage 1:200, Margin = 1.2706 x 0.05 x 100 000/200= \$31.76

• # How to calculate pip?

1) If USD is the quote currency, e.g. EURUSD:

(Units: 1 lot = 100 000, 0.1 lot = 10 000, 0.01 lot= 1000)
1 pip = 0.0001 x units

2) If USD is the base currency, e.g. USDCHF:

1 pip = 0.0001 x units/quote

3) If it is a cross currency pair, e.g. EURGBP:

1 pip = 0.0001 x units x quote currency quote (GBPUSD)

• # How to calculate equity?

Equity = Balance + Floating Profit – Floating Loss

• # How to calculate margin level?

Margin Level = (Equity/Margin) x 100  