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. The margin is calculated based on your capital, price, and leverage of the instrument.
1. Trading with Forex
If you are trading with Forex the maximum remaining quantity of units you can purchase based on the margin can be calculated in the following way:
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, for example, your account currency is GBP and you wish to trade with EUR/USD, the maximum quantity will be based on the exchange rate of GBP to EUR.
2. Trading with other instruments
If you are trading with 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 USD)
*If your account is in a different currency than the traded instrument, the relevant exchange rate at the time of your trade will apply.
