Basic account status parameters in the trading platform
Beginning traders, when opening their first transactions on the exchange, ask a lot of questions, although many of them can be answered directly in the trading platform.
The metatrader trading platform is distinguished not only by its functionality, but also by its information content; this allows you to get a lot of information simply by looking at the indicators of an open order.
The main thing is to know what all these numbers mean that appear after you clicked buy or sell and a new order appeared on the “Trading” tab.
At its core, this tab contains the most complete information on the funds in your account; open positions in the trading platform you just need to know how to use it.
Some of the parameters are intuitive, while others require some explanation:
Balance – the amount of funds on the deposit that was before the opening of the first transaction, indicating the currency in which the deposit is contained. The financial result of open positions is not taken into account here.
Funds – the amount of funds taking into account the financial result of open transactions. If you close all transactions, this amount will move to the place of the balance.
Margin is perhaps one of the most interesting indicators, the one that raises the most questions. It shows the amount of collateral that supports the transaction. Margin is calculated quite simply - the amount of funds required to open a transaction divided by leverage.
In our case, 1 lot in euros is equal to = 105261 dollars/100 = 1052.61 dollars, the leverage on this account is 1:100 Thanks to this simple formula, you can always calculate how much money will be reserved when opening an order of a given volume.
Free margin – that is, those funds that can act as collateral when opening new orders. Calculated using the formula – Funds – Margin, it takes into account not only the funds involved in supporting other transactions, but also the current financial result (profit or loss).
Level - and if you decipher it, then this is the level of margin, that is, the ratio of funds to margin. The higher it is, the lower the risk of an open transaction. This indicator is displayed as a percentage.
Profit is the main indicator characterizing the financial result of a transaction; the indicator can have both a positive and negative sign.
After you close all transactions, only the balance, funds and free margin will be displayed on the trade tab. In this case, the displayed amount will be the same.