It shows the PnL for each pip based on position size... but I already know how to calculate this myself. I mentioned the 4 formulas above for calculating your position size. But that's not the info I am looking for. I am looking for the formula for Margin USED, after entering a position, as price moves against your position. Think about it this way... if you enter a position... at some point price will move so far against you, that you would use 100% of your margin. The question is... how do you figure out what this point is? For the moment, ignore the threshold the broker sets(oanda is 50%), as thats not the difficult part. This will change depending on how much you buy and what leverage you are using.
Or...? X = Balance - {balance + open PnL - [(Base Currency / Account Currency) ✕ Units] / Leverage} This should give you Margin Used if I am not mistaken... Although we agree it's obvious you won't be allowed to go past your net balance.
Correct, we don't need to worry about that for this discussion. Lemme check out your formulas, will report back in a few.
The margin required to maintain a position at any level would be the same as if you were to open a position at that level.
Nope. I understood just now, reading first post on, what you are looking for but my FX knowledge is a little bit rusty since its been years since my last trade after switching to currency futures so I can't offer assistance.
I put a - for a + there... last time I did an equation smartphones were yet to be invented Margin= 10k trade : 50 leverage = 200 Cash available= 1k (balance) - (10k units : 50 leverage) = 800 Margin used = 1k balance - [1k (balance) - (10k units : 50 leverage)] = 200 including Pnl, let's assume -100$ to the 200 used margin figure: 1k balance - [1k (balance) + (-100$ PnL) - (10k units : 50 leverage)] = 300 Although it's the cash available that changes, margin used stays the same, so... cash available= 1k (balance) + (-100$ PnL) - (10k units : 50 leverage) = 700 buying power of margin left: 700 x 50 leverage add a x50 to the formula if you want to know how much margin power you have left to spare with 100$ drawdown on your 10k trade, 50 leverage: 50x [1k (balance) + (-100$ PnL) - (10k units : 50 leverage)] = 35k