How to calculate the used deposit?

2023-05-31

Summary:

Learn how to calculate the used deposit in trading with EBC step-by-step guide. Understand the process and improve your trading strategies.

Used margin refers to the amount of margin already used during trading. That is to say, when opening or adding positions, a portion of the margin will be frozen as a risk reserve, which belongs to the used margin. The used margin corresponds to the available margin, which is the remaining margin in the account that can be used for new or additional positions in addition to the frozen portion.

Margin

The size of the used margin depends on the selected leverage ratio and trading volume. The larger the trading volume and the higher the leverage ratio, the more margin is required, so the used margin will also increase accordingly. When conducting transactions, it is necessary to pay attention to controlling the size of the used margin to avoid account breaches or insufficient funds.

The calculation formula for the used margin is as follows:

Used margin=trading volume, opening price, and leverage ratio.

Among them, the trading volume refers to the number of contracts or trading hands selected, the opening price refers to the current market price of the trading variety, and the leverage ratio refers to the leverage ratio set by the trading account.

For example, suppose that the leverage multiple of a trading account is 100 times, and you want to open a standard gold contract at the current market price of 1800 dollars per ounce. So, according to the above formula, the used margin for this transaction is:

Used deposit = 1 hand = 1800 USD 100 = 180 USD

Therefore, when conducting transactions, it is necessary to pay attention to the size of the margin used to avoid situations such as account breaches or insufficient funds.

Previous： Introduction to Forex Margin Business Operation

Next： Available Margin vs. Available Funds: Key Differences Explained

Related Articles

What Is Palladium and How Does It Compare to Gold?

What Is Palladium and How Does It Compare to Gold?

Discover what palladium is, how it's used, and how it compares to gold in terms of value, rarity, and investment potential in 2025.

2025-04-24

Is OpenAI on the Stock Market? Access & Alternatives

Is OpenAI on the Stock Market? Access & Alternatives

Is OpenAI on the Stock Market in 2025? Learn how to gain AI exposure, OpenAI's IPO prospects, and the best alternatives for interested investors.

2025-04-24

Top 5 Mistakes to Avoid with the ABCD Pattern

Top 5 Mistakes to Avoid with the ABCD Pattern

The ABCD pattern is a popular trading tool, but avoiding mistakes like misinterpreting key points and overtrading is crucial for successful trading.

2025-04-24

EBC Financial Group is a co-brand shared by a group of entities including:
EBC Financial Group (SVG) LLC is authorized by the St.Vincent and the Grenadines Financial Services Authority(SVGFSA),and the company registration number is 353 LLC 2020, with registered address at Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines.

Other Relevant Entities
EBC Financial Group (UK) Limited is authorised and regulated by the Financial Conduct Authority. Reference Number: 927552. Website:www.ebcfin.co.uk
EBC Financial Group (Cayman) Limited is licensed and regulated by the Cayman Islands Monetary Authority (Number: 2038223). Website: www.ebcgroup.ky
EBC Financial (MU) Limited is licensed and regulated by the the Financial Services Commission, Mauritius (License Number GB24203273) with registrated address at 3rd Floor, Standard Chartered Tower, Cybercity, Ebene, 72201, Republic of Mauritius. Website for this entity is maintained separately.
EBC Financial Group (Comoros) Limited is authorised by The Autonomous Island of Anjouan, Union of Comoros Offshore Finance Authority with License number L 15637/EFGC, with registered office address at Hamchako, Mutsamudu, Autonomous Island of Anjouan, Union of Comoros.
EBC Financial Group (Australia) Pty Ltd (ACN: 619 073 237) is authorised and regulated by the Australian Securities and Investments Commission (Number: 500991). EBC Financial Group (Australia) Pty Ltd is a related entity of EBC Financial Group (SVG) LLC. The two entities are managed separately. The financial products and services offered on this website are NOT provided by the Australian entity and no recourse against the Australian entity is available.
EBC Group (Cyprus) Ltd, faciliates payment services to the licensed and regulated entities within the EBC Financial Group strucutre, registered under the Companies Law of Republic of Cyprus with the number HE 449205, registered office address at 101 Gladstonos, Agathangelou Business Centre, 3032 Limassol, Cyprus.

Business Address: The Leadenhall Building, 122 Leadenhall Street, London, United Kingdom, EC3V 4AB. Email Address :[email protected] . Telephone : +44 20 3376 9662

Disclaimer: EBC Financial Group explicitly does not participate in any cryptocurrency activities or offer Crypto Contracts for Difference (CFDs). Our financial services solely pertain to traditional instruments. Clients are advised that any references to crypto-related services using the EBC name are inaccurate and unauthorized. Any reference to past performance is not indicative of future performance. The information contained in this website is provided for reference only and does not constitute any investment advice.

Regional Restrictions: EBC does not offer any services to citizens and residents of certain jurisdictions including: Afghanistan, Belarus, Burma (Myanmar), Canada, Central African Republic, Congo, Cuba, Democratic Republic of the Congo, Eritrea, Haiti, Iran, Iraq, Lebanon, Libya, Malaysia, Mali, North Korea (Democratic People's Republic of Korea), Russia, Somalia, Sudan, South Sudan, Syria, Ukraine (including Crimea, Donetsk, and Luhansk Regions), the United States, Venezuela, and Yemen.
Any Spanish on this website is for LATAM only and is not designated for anyone in European Union or Spain For more information, please check out our FAQs.
Any Portuguese on this website is for Brazil and Africa only, and is not designated for anyone in European Union or Portugal. For more information, please check out our FAQs.

Compliance Disclosure：The website can be accessed globally and is not specific to any entity. Your actual rights and obligations will be determined based on the entity and jurisdiction that you choose to be regulated.There may be local laws and regulations which prohibit or limit your rights to access, download, distribute, disseminate, share or otherwise use any or all of the documents and information published on this website.

Risk Warning: Trading Contracts for Difference (CFDs) are complex financial instruments and come with a high risk of losing money rapidly due to leverage. Trade on margin carries a high level of risk and may not be suitable for all investors. Before deciding to trade Forex and CFDs, you should carefully consider your trading objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial trading capital. We recommend that you seek independent advice and ensure you fully understand the risks involved before making any investment decision. Please read the relevant risk disclosure statements carefully before trading.