How is Margin calculated on MT4?

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

The formula is as follows:

Lots x Contract Size x Margin%,

or, (Lots x Contract Size) / Leverage

You can find all contract sizes by right-clicking on any symbol in MT4's market watch and then selecting 'Specification'. 

A window will pop up containing information about the selected symbol:

Example:

1. EUR/USD:

   • If you want to buy 1 lot of EUR/USD with a margin percentage of 0.5%:
   • Calculation: 1 x 100,000 x 0.5% = 500 EUR
   • If your account currency is in EUR, you need 500 EUR as margin.

2. USD/JPY:

   • If you want to buy 1 lot of USD/JPY with a margin percentage of 0.5%:
   • Calculation: 1 x 100,000 x 0.5% = 500 USD
   • If your account currency is in EUR, you will need to convert the 500 USD into EUR.

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