The calculators are used for illustrative purposes only and use default account settings, including standard margin rates. It does not consider all variables such as dynamic margin rates or effective leverage. Calculations may vary based on different server setups or client specific account settings.
The Axi margin calculator is a trading tool that will help traders determine how much margin is required to open a trading position.
To calculate the margin required to open a trade, the calculator will multiply trade size with the price of the instrument, and then divide by leverage.
For lots:
[(Number of lots * Notional value of lot * Price of product) / Leverage Factor] *Account currency exchange rate
(Only if the account currency is different from the denominated currency of the product)
For cash/units:
(Units * Price of product) / Leverage Factor] *Account currency exchange rate
(Only if the account currency is different from the denominated currency of the product)
The leverage factor is calculated as follows (Margin % and Initial Margin Rate % can be found in the product schedule):
For products that use account leverage:
Account leverage / (Margin % * 100)
For products that have fixed leverage:
1/Initial Margin Rate %
To calculate the margin required to open a trade, select your trading instrument and account base currency, specify your trade size and leverage, and click “Calculate”.
Example
Trading instrument: EURAUD
Account base currency: USD
Trade size (in lots): 0.1
Leverage: 30
Exchange rate: 1.5495
[(0.1 * 100,000 EUR * 1.5495 AUD per EUR)/30] = 516.5 AUD.
Prices at time of calculation
Converting this to account currency:
774.74 AUD * 0.66407 USD per AUD = 342.99 USD.
Prices at time of calculation
To open the trade, you would require a minimum margin of 342.99 USD
in your account.
A margin is the amount of capital required to open and maintain a new position.
Leverage is, essentially, borrowed capital from the broker to the trader. A common tool when trading forex or CFDs, leverage allows traders to hold larger positions that they would, otherwise, not be able to deposit. For instance, a leverage of 1:10 would allow a trader to trade a position 10 times greater than the capital deposited in their trading account.
Required margin is the amount of capital in your trading account that is “locked up” when you open a new trade.
A “lot” is the number of currency units that a trader buys or sells. There are four lot sizes – standard, micro, mini, and nano – with the standard lot size equal to 100,000 units of currency.
