Home > Education center > Common problems > About trading

Common problems

Used margin calculation

Dollar settlement:

Used margin = market price at the time of the contract * contract unit * margin ratio * contractsize

Non-US dollar settlement:

Used Margin = Current Market Price * Contract Unit * Margin Ratio * Number of Contracts * Settlement Currency to US Dollar Exchange Rate

An example is as follows:

1. UKOUSD (UK Brent OIL)
UKOUSD which sells 10 contracts at a certain time on a certain day of the month, the selling price is 55.100, and the market price is 53.100/54.100 at some time on the next month. Used Margin = Market BID Price * Contract Unit * Margin Ratio * Contract Quantity = 53.100*1000*2%*10 =$10620

2. SPXUSD (S&P 500)
The SPXUSD that buys 10 contracts at a certain time on a certain day of the month, the purchase price is 1400.00, and the market price is 1480.00/1481.00 at a certain time on the next month. Used Margin = Market ASK Price * Contract Unit * Margin Ratio * Contract Quantity = 1481.00 * 100 * 2.00% * 10 = $29620

3. 100GBP (UK100)
buys 2 contracts of 100GBP at a certain time on a certain day of the month, the purchase price is 5700.0, the market price is 5799.0/5801.0 at a certain time on the next month, and the British pound exchange rate is 1.58540. Used Margin = Current Market Price * Contract Unit * Margin Ratio * Contract Quantity * GBP / USD Quote = 5801.0 * 10 * 4.00% * 2 * 1.58540 = 58010 * 4.00% * 2 * 1.58540 = $7357.5

4. D30EUR (DAX30)
sells D30EUR for 5 contracts at a certain time on a certain day of the month. The selling price is 6900.0. The market price is 6998.0/7002.0 at a certain time on the next month, and the euro exchange rate is 1.33547. Used Margin = Current Market Price * Contract Unit * Margin Ratio * Contract Number * EUR / USD Quote = 6998.0 * 10 * 4.00% * 5 * 1.33547 = 69980 * 4.00% * 5 * 1.33547 = $18691.2

*Margin used has nothing to do with long positions or short positions

Point value calculation

Valuation currency description:The currency in the currency pair is the denomination currency. For example, CHF in USD/CHF is the denomination currency.

Base point description:For the regular currency pair, the fourth digit after the decimal point is the base point (0.0001), for example: EUR/USD 1.10669
Japanese currency pair, the second digit after the decimal point is the base point (0.01), for example: USD/JPY 120.664
spot gold, after the decimal point The first place is the base point (0.1), for example: XAU/USD 1138.13
spot silver, the second place after the decimal point is the base point (0.01), for example: XAG/USD 15.299 In short, in the DTFOREX five-digit quotation system, the penultimate is base point.

Point value calculation formula:
Point value = Contract Size * Tick Size * Quote Currency Rate

An example is as follows:

1. Take USD/CHF as an example: Assume that the current exchange rate of USD/CHF is 0.95268, then the customer trades one standard lot per transaction. The point value is: USD/CHF point value = 100000*0.0001*(1/0.95268) = $10.496

2. Take GBP/JPY as an example: Assume that the current exchange rate of GBP/JPY is 184.092, and the current exchange rate of USD/JPY is 119.289. The customer trades one standard lot per transaction. The point value is: GBP/JPY point value=100000*0.01 *(1/119.289 (USD/JPY))= $8.383

3. Take GBP/NZD as an example: Assume that the current exchange rate of GBP/NZD is 2.27219, and the current exchange rate of NZD/USD is 0.67925. The customer trades one standard lot per transaction. The point value is: GBP/NZD point value=100000*0.0001 *0.67925 (NZD/USD)= $6.7925

4. Take AUD/CHF as an example: Assume that the current exchange rate of AUD/CHF is 0.69072, and the current exchange rate of USD/CHF is 0.95268. The customer trades one standard hand per transaction. The point value is: AUD/CHF point value=100000*0.0001 *(1/0.95268(USD/CHF))= $10.496

5. Take EUR/AUD as an example: 8:05 AM 2015-11-05 Assume that the current exchange rate of EUR/AUD is 1.56823, and the current exchange rate of AUD/USD is 0.72511. The customer trades one standard lot per trade, the point value is: EUR /AUD point value = 100,000 * 0.0001 * 0.72511 (AUD / USD) = $7.2511

6. Take USD/CAD as an example: Assume that the current exchange rate of USD/CAD is 1.29256, and the customer trades one standard lot per transaction. The point value is: USD/CAD point value=100000*0.0001*(1/1.29256) = $7.736

7. Take USD/TRY as an example: Assume that the current exchange rate of USD/TRY is 2.89330, and the customer trades one standard lot per transaction. The point value is: USD/TRY point value=100000*0.0001*(1/2.89330) = $3.456

8. Take EUR/SEK as an example: Suppose the current exchange rate of EUR/SEK is 9.35928, and the current exchange rate of USD/SEK is 8.23098. The customer trades one standard lot per transaction. The point value is: EUR/SEK point value=100000*0.0001 *(1/8.23098(USD/SEK))= $1.214

Take USD/CNH as an example: Assume that the current exchange rate of USD/CNH is 6.36370, then the customer trades one standard lot per transaction. The point value is: USD/CNH point value=100000*0.0001*(1/6.36370) = $1.571

10. Take D30EUR as an example: Suppose the current price of D30EUR is 10121.0, the current exchange rate of EUR/USD is 1.13719, the customer trades a standard lot per trade, the point value is: D30EUR point value=100000*0.0001*1.13719 (EUR/USD ) = $11.3719

Risk warning:All foreign exchange, precious metals are accompanied with great risk, therefore is not suitable for all investors. Please be sure to fully understand the risks at your own can bear within the scope of the investment. More risk for details, please refer to the risk of WSG statement and deposit policy.