Whenever you trade with CFDs and you wish to open a position with a given instrument, there will be a margin of blocked funds that are needed. A margin calculation is based on your capital, price, and leverage.
Trading with Forex
In Forex trading, the maximum quantity of units you can buy using the margin is calculated as follows:
Capital * leverage = Maximum Quantity
For example:
If your account is in GBP and you wish to trade with GBP/USD:
5000 * (1:30) = approx. of 150 000 units of Forex
If your account is in a different currency than the traded forex couple, e.g., your account currency is GBP and you wish to trade EUR/USD, the maximum quantity will be based on the exchange rate of GBP/EUR.
Trading with other instruments
If you are trading any other instrument the maximum quantity of units is calculated by the following way:
Price * % (MARGIN) = Leveraged Price
↪ Capital/ lev. Price = Max. Quantity Units
For example:
If you would like to trade with a long 'Buy' position of Gold at $1,730
$1,730 * (0.05) = $87.5
5000 / 87,5 = approx. 57 units of Gold
*If your account is in a different currency than the traded instrument, the relevant exchange rate at the time of your trade will apply.