How do you calculate margin on Deriv? 2024
The most common question that we get is how do you calculate margin on Deriv? Deriv has a margin calculator for Synthetic indices and for Financial Markets.
What is a margin in forex and synthetic indices?
In simple terms, margin is the amount of money you need to open and to keep a trade with a specific lot size.
Estimate the margin you need to hold and open your synthetic indices and forex positions on deriv. The result depends on leverage, volume lot, and your Deriv MT5 trading account balance.
How do you calculate margin on Deriv for ypur trades
This is how you calculate the margin on Deriv
The margin required for a trade on Deriv MT5 account is calculated based on this simple formula:
Margin required = (volume × contract size × asset price) ÷ leverage
This formula will tell you the margin requirement in the quote currency for forex pairs, or in the denomination of the asset for other instruments like synthetic indices.
For Example, if you are trading the USD/ZAR pair, the margin requirement will be calculated in South African rands (ZAR) which is the quote currency on this pair.
Where as on the other side, if you are trading Volatility Index 100, then the margin requirement will be calculated in US Dollar (USD), which is the denomination of the volatility indices or any other derived synthetic indices indices like the Volatility Indices, Boom and crash indices, Drift switching indices, DEX indices, Jump indices, Step indices and Range break indices
Here is an of how to calculate margin on a forex pair on deriv
Deriv margin required example for forex pair
For example, lets say you was to trade 2 lots of GBP/USD with an asset price of 1.24699 USD and leverage of 1000.
So you will require a margin rate of 249,398 USD to open the above position.
Note that these are approximate values only and will differ depending on the leverage that is set for your account and the asset you want to trade.
This is how to calculate margin on a synthetic indices on deriv
For example, lets say we were to trade 1 lot of Volatility 75 Index at a price of 196727.5895 USD and leverage of 1000.
The required margin was going to be 196.728 USD. Meaning you will need you MT5 account balance to be that amount in order to take a trade
deriv margin calculator 2024
SEE Other calculators : https://synthetic-indices.com/synthetic-indices-calculators/