Margin Pip Calculator Use our pip and margin calculator to aid with your decision-making while trading forex. Maximum leverage and available trade size varies by product.
Calculate the margin required when you open a position in a currency pair. Find out about margin rules. For more information refer to our regulatory and financial compliance section. This is for general information purposes only - Examples shown are for illustrative purposes and may not reflect current prices from OANDA. It is not investment advice or an inducement to trade. Past history is not an indication of future performance.
CFDs and Spread Betting are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs and Spread Betting work and whether you can afford to take the high risk of losing your money.
With regards to the FSB authorisation, FxPro provides execution services and enters into principal to principal transactions with its clients on FxPro's prices; these transactions are not traded on an exchange.
CFDs are a leverage product and can involve a significant risk of loss. Trading CFDs may not be suitable for all, therefore you should ensure that you understand the risks involved and take into account your individual circumstances.
It is important that the companies being compared are fairly similar in terms of size and industry. For example, comparing the profit margins of a small family restaurant to that of a Fortune chemical company would not yield particularly relevant results because of the differences in industry and scale.
Margin trading is the practice of using borrowed funds from brokers to trade financial assets; this essentially means investing with borrowed money. Usually there is collateral involved, such as stocks or other financial assets of value. Buying stocks using borrowed money is known as "trading on margin. However, when the prices of these assets fall, the loss in value is much greater than the regular trading of assets.
Keep in mind that initial margin requirements are different from maintenance margin requirements. This form of margin investing is highly risky and investors borrowers should familiarize themselves with the risks first. In the context of currency exchange, margin can be thought of as a good faith deposit required to maintain open positions, similar to a security deposit that is required for renting.
However, it is not a fee, but a portion of account equity that is allocated as a margin deposit. A margin requirement is the leverage offered by a broker, and is usually updated at least once a month to account for market volatility or currency exchange rates. In the foreign exchange market, traders tend to trade with leverages of If the market moves against a trader, resulting in losses such that there is an insufficient amount of margin, an automatic margin call will apply.
This usually happens because there is no more money in the account to withstand the loss in value of equities, and the broker starts to become responsible for losses.
Profit Margin Calculator
Currency trading typically means using leverage (margin trading). Traders can enter into positions larger than their account balance. Calculate the margin required to open a position in a currency pair. Use the FxPro Margin Calculator and access currency rates to help you with calculations when trading CFDs on forex and other asset classes. Margin calculator can be used to evaluate the margin requirements of a position according to the given leverage and account base currency both in trade and account currency.