To open an order successfully, it is essential to have sufficient funds. Before opening an order, you should calculate the following:
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Required Margin:
- Margin is the amount of funds in the account currency that is withheld by the broker for opening and maintaining the order. For many instruments, the margin calculation depends on the leverage set, while others have fixed margin requirements.
- Margin=Number of Lots×Contract SizeLeverage
- You can use the Investment Calculator to input order-specific information and calculate the margin. Refer to the instructions on using the Investment Calculator for more details.
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Cost of Spread:
- For each order opened, there is a spread charge, which is the broker's fee.
- Cost of Spread=Spread (in pips)×Pip Value
- You can check real-time spreads from the trading platform or use the average spread listed in the contract specifications on the broker's website. To calculate the pip value, you can use the Investment Calculator.
It's important to note that the system will check if your equity is sufficient to cover the calculated margin and the cost of spread individually before allowing the order to be opened.
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