How is Margin calculated on cTrader?

First, it is important to distinguish between Base Currency (aka Primary) and Term Currency (aka Secondary or Quote).

Golden Rule: Margin is always denominated in the Base Currency. If your account currency is different from the Base Currency, it will be converted to your account currency.

Formula: Margin = Units (or Amount) x Margin%
or
Margin = Units / Leverage

Examples:

1. EUR/USD:

   • If you want to buy 100,000 EUR/USD with a margin percentage of 0.5%:
   • Calculation: 100,000 x 0.5% = 500 EUR
   • If your account currency is EUR, you need 500 EUR as margin.

2. USD/JPY:

   • If you want to buy 100,000 USD/JPY with a margin percentage of 0.5%:
   • Calculation: 100,000 x 0.5% = 500 USD
   • If your account currency is EUR, you will need to convert the 500 USD into EUR.

This ensures you understand how to calculate the margin required for different trades and how it may vary based on the account currency.