How is Cash Used (Margin) calculated on Moon Trader?

It's important to distinguish between the Base Currency (Primary) and the Term Currency (Secondary or Quote) when calculating Cash Used (Margin).

Golden Rule:

Cash Used is always denominated in the Base Currency. If your account currency differs from the Base Currency, it will be converted to your account currency.

Formula:
Cash Used = Units (or Amount) x Margin%
or
Cash Used = Units / Leverage

Example

1. If you want to Buy 100,000 EURUSD with a margin percentage of 0.5%, then it is simply                100,000 x 0.5%= 500 EUR
2. If I want to Buy 100,000 USDJPY with a margin percentage of 0.5%, then it is simply               100,000 x 0.5% = 500 USD

Account Currency Conversion:

• If your account currency is in EUR:
  • In the first example (EUR/USD), you'll need 500 EUR as margin.
  • In the second example (USD/JPY), the system will need to convert the 500 USD into EUR.

Understanding this formula helps you manage your trades and ensure you have the necessary margin in your account currency.