How can we calculate the margin requirements?

<p id="isPasted">Margin = (Notational volume * Current Trading Value of currency) / Leverage.</p><p>Where Notational volume is the number of lots multiplied by 100,000 units.</p><p>Example:</p><ul><li><p>BlackBull Markets offers leverage of 1:500</p></li><li><p>Assume a balance of $1,000</p></li><li><p>And you were trading the EURUSD, which is currently trading at the 1.11890 mark.</p></li><li><p>And you were trading 3 lots.</p></li></ul><p><strong>If we were to enter these quantities into our Margin Formula:</strong></p><p>= ((3*100,000) x 1.11890) / 500</p><p>= (300,000 x 1.11890) / 500</p><p>= 335670 / 500</p><p>= 671.34 =&nbsp;<strong>Margin</strong></p><p>This formula indicates that the higher your leverage, the smaller your margin requirement will be.</p><p><strong>Free Margin Formula: </strong>Equity – Margin = Free Margin</p><p><strong>Example:</strong> 1,000 – 671.34 = 328.66</p><p><strong>Margin Percentage Formula: </strong>&nbsp;(Equity / Margin) x 100 = Margin %</p><p><strong>Example:</strong> (1,000 / 671.34) x 100 = 148.96%</p><p>Once your account reaches a Margin percentage below 75%, you will receive a margin call.</p><p>Below 50% you will be stopped out / liquidated. This means all your open positions will automatically be closed.</p><p>To prevent a stop more funds will be required, or open positions must be closed.</p><p>With our example, we can see that a margin call would have been received by this point and our account is nearing a stopout.</p><p>All these calculations are provided on the MT4 platform. However, a successful trader needs to understand how these figures are derived and what they represent.</p><p>If further explanation is required, trading guide videos are available on our YouTube channel or feel free to contact our support team via live chat.</p>