About margins

 

Hi guys I'm still learning with forex and trading and I need to know something. I have a demo account with Metatrader plateform and on my account it says 1:100 I imagine it's the margin ratio even thought its not indicated it is. The problem is on the bottom left I have my balance which is now 2240$. It's says Margin is 530.00, Free Margin is 1717 and the Margin level is at 424.55 %. I went with a 0.1 (10 000) lot size of USDJPY but I still don't know what actually is my margin ratio and how much is the margin and how much is my money in the 10 000$ size. Thanks for your help

 

A definition of margin level that might help you sort out what is what

The margin level is calculated by dividing the current equity in an account by the current amount of margin in use (used margin). ( view figure 2 ) After dividing the equity by the margin move the decimal two places to the right. A trader whose equity is at $1,000 and who is using a $500 of margin would divide 1,000 by 500 which of course equals 2. Then move the decimal two places to the right; thus current margin level or percentage is 200%. At 100% margin level a trader is essentially using their entire available margin. When this level drops to 50% trades will automatically be closed to help ensure that a trader is not subject to losing more money than is held in their account.
PixiZakon:
Hi guys I'm still learning with forex and trading and I need to know something. I have a demo account with Metatrader plateform and on my account it says 1:100 I imagine it's the margin ratio even thought its not indicated it is. The problem is on the bottom left I have my balance which is now 2240$. It's says Margin is 530.00, Free Margin is 1717 and the Margin level is at 424.55 %. I went with a 0.1 (10 000) lot size of USDJPY but I still don't know what actually is my margin ratio and how much is the margin and how much is my money in the 10 000$ size. Thanks for your help
 

Sure it helps thanks alot!