[FREE DOWNLOAD] Margin Calculator

2 comments

• 

  Mr David N Murphy

  6 years ago Reply

  I have looked at the margin clacultor, very neat thanks. But I don;t understand what goes in the first box. The spread betters are hopeless at providing information, yet it seems it should be trivial to calculate.

  what is the principle by which the first box is calcuted.?
  Ad specifically what do I need for the major currencies (GBP/USD is my main one) and for the S&P and Dow?

  many thanks
  david

  • 

    A

    Mark Rose

    6 years ago Reply

    Hi David,

    The first yellow box that you enter data into on the calculator is the size of the instrument (Dow, S&P, GBPUSD), measured in pips.

    Unfortunately the size of a pip varies depending on the instrument you are trading.

    If we take your three examples.

    The Dow is nice and simple to follow as 1 pip is equal to 1 whole point.

    The Dow is currently valued at approx 26,285.50, so you would enter 26,285.50 into the first box of the calculator.

    For each 1 point move in the value of the Dow you will be up or down 1 x your stake.

    The S&P is a little more complicated.

    Some brokers offer the S&P to trade as 1 pip is equal to 1 whole point.

    The S&P is currently valued at approx 3,178.58, so you would enter 3,178.58 into the first box of the calculator.

    For each 1 point move in the value of the Dow you will be up or down 1 x your stake.

    However, most brokers offer the S&P to trade as 1 pip is equal to 0. 10 of a whole point.

    The S&P is currently valued at approx 3,178.58, so you would enter 31,785.80 into the first box of the calculator.

    For each 0.10 point move in the value of the Dow you will be up or down 1 x your stake.

    For obvious reasons, it is important to know how your broker offers the S&P to trade, as you could be risking 10 x more than you had intended to if you get this wrong.

    For most FX pairs (other than JPY pairs) a pip is equal to 0.0001 of a whole point.

    GBPUSD is currently valued at approx 1.2486, so you would enter 12,486 into the first box on the calculator.

    For each 0.0001 point move in the value of the GBPUSD you will be up or down 1 x your stake.

    For JPY pairs a pip is equal to 0.01 of a whole point.

    USDJPY is currently valued at approx 107.57, so you would enter 10,757 into the first box on the calculator.

    For each 0.01 point move in the value of the USDJPY you will up or down 1 x your stake.

    I hope that helps.

    Regards,

    Mark Rose