# How to calculate margin (collateral) in the MetaTrader 4 platform? How to determine leverage by instrument?

It should first be noted that **margin requirements **are expressed as a percentage in the MetaTrader's trading conditions. This is the percentage of a transaction's nominal value that will be set aside as the margin.

For example, for EURUSD, the margin requirement is 0.1% (information on each instrument's trading conditions is available in the Instrument Specification).

This is the percentage of the transaction's nominal value that will be held on the account as margin.

*Let's look at a calculation example for this instrument.*

Let's assume that we're planning to open a transaction on EURUSD at 1.18250 with a volume of 1 lot.

One lot corresponds to 100,000 units of the base currency.

Thus, the transaction's nominal value is:

1.18250 (opening price) * 100,000 (transaction volume) = $118,250

Only 0.1% of this amount, i.e., $118.25, will be reserved as **margin**.

## How to determine the maximum leverage by instrument?

If necessary, the margin requirement as a percentage can be expressed in a form that many traders find familiar.

To do so, divide the margin requirement in percentage by 100.

In other words, the leverage for EURUSD is 100/0.1 = 1000. So, as a fraction, the leverage is 1/1000.

Several formulas for calculating the margin for different types of trading instruments are shown below:

__For directly priced pairs like EURUSD and GBPUSD:__

Collateral = Current Price * Volume/Leverage

__For reverse priced pairs like USDRUB and USDJPY:__

Collateral = Volume/Leverage

__For cross rates like EURRUB and EURJPY:__

Collateral = Current Price * Volume/Leverage/Price of currency being quoted

__Calculating margin for stocks and indices:__

Margin requirements in % * volume of shares * instrument volume = margin for an open position