Leverage, Margin and Swap Points

[pmxgs0]

Hello,

I have a few doubts that I hope someone can help:

1- Where do we change Leverage?
The only place I could find, is if we change the required margin inside the symbol properties settings.
For example if I set margin = 1000 for a 1 standard lot, I'm using 100x leverage. If I change margin to 2000 for a 1 std. lot I'm using 50x leverage.
Is this correct?
I changed these parameters and then changed to testing mode (without generating ticks), but the margin requirements didn't change. What do I need to do for these changes to take place?

2- How is margin calculated in Forex Tester?
For example GBPJPY

3- How are the swap points calculated?
For example assuming that the base currency has a interest rate of 2% and the second currency has a int. rate of 1%.

thanks

[FT Support]

Hello,

1. Yes you're correct, if you need to set 100x leverage then you need to set margin=lot size/100, and if you need to set 50x leverage then you need to set margin=lot size/50.

2. What do you mean by "calculated"? Margin just can be set in symbol properties according to the leverage you need (please see above)

3. You need to get swap values from your broker (brokers have different swap values because of different rollover commisions)
Here is an example of swap values: http://www.alpari-forex.com/en/swaps_history/

[pmxgs0]

Hi,

thanks for your reply.

regarding question 2) I would like to know exactly how Forex Tester calculates the required margin when we open a new position.
For example, I opened a new position (1 mini lot =0.1) in GBPJPY and the required margin was 148. The margin set in the in the GBPJPY symbol was 1000 for a 100000 lot.
I hope my question is clearer now.

thanks

Hello,

1. Yes you're correct, if you need to set 100x leverage then you need to set margin=lot size/100, and if you need to set 50x leverage then you need to set margin=lot size/50.

2. What do you mean by "calculated"? Margin just can be set in symbol properties according to the leverage you need (please see above)

3. You need to get swap values from your broker (brokers have different swap values because of different rollover commisions)
Here is an example of swap values: http://www.alpari-forex.com/en/swaps_history/

[Terranin]

Hi,

thanks for your reply.

regarding question 2) I would like to know exactly how Forex Tester calculates the required margin when we open a new position.
For example, I opened a new position (1 mini lot =0.1) in GBPJPY and the required margin was 148. The margin set in the in the GBPJPY symbol was 1000 for a 100000 lot.
I hope my question is clearer now.

thanks

Hello,

1. Yes you're correct, if you need to set 100x leverage then you need to set margin=lot size/100, and if you need to set 50x leverage then you need to set margin=lot size/50.

2. What do you mean by "calculated"? Margin just can be set in symbol properties according to the leverage you need (please see above)

3. You need to get swap values from your broker (brokers have different swap values because of different rollover commisions)
Here is an example of swap values: http://www.alpari-forex.com/en/swaps_history/

Margin was set for 1 lot and = 1000 GBP, so for 0.1 lot it will be 100 GBP, then Forex Tester recalculates GBP to USD by current rate (I think for that moment it was 1 GBP = 1.48 USD). And you got 148 USD of required margin.

[pmxgs0]

Hi,

I understand you answer.
Just to clarify this point, does Forex Tester obtain the 1.48 from the GBPUSD pair, or is this allways a fixed amount?


thanks

Margin was set for 1 lot and = 1000 GBP, so for 0.1 lot it will be 100 GBP, then Forex Tester recalculates GBP to USD by current rate (I think for that moment it was 1 GBP = 1.48 USD). And you got 148 USD of required margin.

[Terranin]

Hi,

I understand you answer.
Just to clarify this point, does Forex Tester obtain the 1.48 from the GBPUSD pair, or is this allways a fixed amount?


thanks

Margin was set for 1 lot and = 1000 GBP, so for 0.1 lot it will be 100 GBP, then Forex Tester recalculates GBP to USD by current rate (I think for that moment it was 1 GBP = 1.48 USD). And you got 148 USD of required margin.

If you generated ticks for GBPUSD in addition to GBPJPY, it will take current price from GBPUSD chart (for that moment of time), otherwise it will use fixed value from internal data.