Margin Calculator - Free Forex (FX) Trading Tool
When a forex trader start trading, he or she has to calculate margin. What is margin? Margin is the amount of money or collateral deposited by a forex trader with his broker.
The initial deposit required is called initial margin. There is also requirement for maintenance margin, which is an amount of money that must be maintained on deposit at all times by a forex trader with his broker.
If a forex trader's account drops to or below the level of maintenance margin because of adverse price movement, the broker will issue a margin call to bring deposits up to the initial level. If the forex trader fails to do so, account holdings may be liquidated – a situation to be avoided by a forex trader.
Thus, in order to hold open positions, margin has to be computed. Here this free forex margin calculator is very helpful tool for managing forex trades and risk.
Forex Margin Calculator calculates the amount of currency you should buy or sell once you input the appropriate data, which includes - amount of capital, amount of margin used and the amount of equity you are willing to risk on your currency exchange.
The calculator’s decision is based upon the amount of capital, margin used and how much you are willing to risk - among other things – when making its recommendation. )
Forex (FX) Margin Calculator