Can you tell me exactly how “blocked funds” are calculated in the CFD account status please. Thanks
To calculate how much money will be blocked, you should consider the margin requirement.
Let’s take, for example, the EUR/GBP currency pair. The margin for this currency pair is 3.33%. You have to calculate 3.33% of the desired amount of units. The resulting figure will be the blocked amount in the base (first) currency in the currency pair.
If you buy 10,000 units of the EUR/GBP currency pair, it would mean that the blocked amount will be 3.33% of the 10,000, or €333.
Thanks Tony. My position is a bit more complicated than that as I have 3 different positions in oil currently that are all making a loss. However, the value of that loss doesn’t bare any resemblance to the “blocked funds” shown. I’m just trying to get an understanding of the calculations involved so I can ensure I have enough funds in my account to stop them being closed when I reach 25% margin.
Check the following:
Hi Tony. I’ve seen this and printed it off. I have a good idea now of how the margin is calculated but it doesn’t explain in detail how “blocked funds” is calculated, it’s just shows how to use it in the calculations.
The only reason I’m asking is my blocked funds is currently a lot more than the loss I’m making on my positions. Without knowing the calculations I can’t really know how much to find my account with to make sure I don’t get closed at 25% or to be able to place stop losses to ensure I close the positions myself before it’s automatically done for me.
I’ll send you a DM with information about your positions.