1 Lot = 100,000 units 0.10 Lot (Minilot) =10,000 units 0.01 Lot (Microlot) = 1,000 units(Nb. MahiFX does not refer to lots but offers the above trading amounts.)
10 000 pips = 1 unit of currency (exc. Jpy and Huf crosses) 1 pip = 0.0001 units (exc. Jpy and Huf crosses)
MahiFX: Net Account Value (NAV)/Account Equity = Cash Bal. + Unrealised P&L (Profits in Open positions– Losses in Open positions)NAV- Margin Reserved = Margin Available MahiFX MT4: Equity = Balance + Profit Equity-Margin = Free Margin Margin will be levied against open positions. It is highly recommended not to use the full amount of your Equity/NAV as margin on a given trade as any adverse movement in the market may subject you to a margin call.
Profit/Loss = (Exit price – Entry price (after adjusting for applicable swaps)) x position size
Example: Assume you buy 10,000 EUR/USD at 1.3200 and subsequently sell it at 1.3500 (before the application of any swaps).
Profit: (1.3500-1.3200) x 10,000 = $Usd 300
On the MahiFX platform you can find your realised profit/loss under the 'Account Activity' tab. Nb. If you are trading in a currency pair with a R.H.S. currency different to your base currency, your R.H.S. profit/loss will be converted to your base currency.
Pip Value Calculator
Pip Value = (one pip, with correct decimal placement/ currency exchange rate) x units (L.H.S. result)
Example: You buy 10 000 of EURUSD at 1.27 Pip value = (0.0001/1.27) x 10 000= 0.787 EUR
Margin is collateral held against a customers position(s) to protect the FX provider against changes in value of the position(s).
Margin is always a fraction of the value of the asset/position, the size of which will depend on the riskiness of the asset. Volatile and less liquid assets have greater risk and will therefore typically attract a higher margin requirement than lower risk assets.
Margin requirement = (current price x units traded) / Leverage (converted to a users base currency)
Where Margin = 1/Leverage
Example: You want to buy 10,000 EUR/USD at 1.3200, leverage is 100:1
Margin = 1 / 100 = 1%
Margin requirement = (1.3200 x 10 000) x 0.01 = Usd 132.00
You can find your Margin Requirement on the MahiFX platform in the 'Account' tab under the tab 'Margin details'.The MahiFX Platform utilises cross margining to maximise the efficiency of your Margin utilisation. Cross margining means that your bought (long) positions and sold (short) positions for each currency are aggregated. Margin is only assessed on the net exposure. For example, assume a client buys 100,000 EURUSD. Then further assume a client sells 100,000 EURCHF. As the EUR balance nets to zero (the client has both bought and sold 100,000 EUR) the Margin levied on the EUR will reduce to zero after the second trade. There is now however a Margin required for the new CHF balance and Margin required for the prior existing USD balance.
Please follow this link if you want to have more information regarding margins: https://mahifx.com/margin