To open an order successfully, it is necessary to have sufficient funds. Before you open an order, you should calculate the:
1. Required Margin
Margin is the amount of funds in account currency that is withheld by the broker for order opening and keeping the order opened. For a lot of instruments, the margin calculated depends on the leverage set; the rest have fixed margin requirements.
Margin = (Number of lots x Contract size) / Leverage
You can use our Investment Calculator to input all order specific information and calculate the margin. Read more about using the Investment Calculator here.
2. Cost of Spread
For each order that you open, there is a spread charge which is the broker’s fee.
Cost of Spread = Spread(in pips) x Pip Value
You can check real-time spreads from the trading platform or use the average spread listed in the contract specifications on our website. For calculating the pip value use the Investment calculator.
It is important to note that the system will check if your equity is sufficient to cover the calculated margin and the cost of spread (individually).
If you have further inquiries, please don't hesitate to contact our Support Team via "Contact Us" function.