Margin is the amount required in order to enter a position. With leverage, traders are able to open a position by using only a fraction of the margin that they would otherwise need without leverage. The higher the leverage amount a trader uses, the lower the margin requirements.
Initial margin — Initial margin is the minimum amount of collateral you must hold to keep trading positions open.
Initial Margin =Paid PriceTick Index= (Entry Price /Leverage)Tick Index
Maintenance Margin — it is 50% from Initial Margin. Example: Initial Margin of the trader is 500 DGTX and his Maintenance Margin is 250 DGTX.
Order Margin — funds that must be on trader’s account when placing an order. Order margin is denominated in DGTX.
For a buy order:
Order Margin = q * (Entry Price / Leverage) / Tick Index
For a sell order:
Order Margin = q * (max(BestBid Price,Entry Price) / Leverage) / Tick Index
where q - number of orders, Best Bid Price - max price for a buy contract on the market at the time of sending the order.
Position Margin — funds that must be on a trader's account to keep trading positions.
For a long and short position:
Position Margin = q * Initial Margin
Available Balance — user balance, which is available for placing orders, withdrawing funds
*q - the quantity of contract in position