Notional divided by leverage
In the USD-denominated trading model, margin = quantity × entry price ÷ instrument leverage. EURUSD quantity 1,000 at 1.08000 and 1:20 uses $54 of margin.
TRADING RULES
Room for the trade. Room for the risk.
Margin is a server-side permission to hold simulated exposure, not a payment.
Pending orders reserve capacity
The order check includes open-position margin and the reserved notional margin of pending orders. Two simultaneous orders cannot both spend the same free margin because account updates commit transactionally.
Equity can reduce free margin
Free margin = net liquidation equity minus used margin. Floating losses reduce it. New orders and pending reservations may use up to 50% of current equity, leaving a margin reserve. Existing exposure is liquidated for margin only if equity falls below 50% of used margin; daily and trailing account loss limits remain active independently.
Units are explicit
Forex uses 100-unit steps; index CFDs and gold use 0.01-unit steps. These underlying units are not a promise of any broker’s contract or lot specification.