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Education · Lesson

Margin Walkthrough

A worked example showing exactly how Equity, Used Margin and Usable Margin behave in a Live ActTrader account — and how a margin call is triggered.

5-minute read
You'll learn what Equity, Used Margin and Usable Margin mean, how they change when you open positions, and when a margin call kicks in.
Start the lesson
Vocabulary

The three numbers that matter

Every margin discussion comes back to these three figures. Learn them first, then watch them move as we open trades below.

Equity

The current total value of your account, including unrealised profit or loss on open positions.

Used Margin (UsdMr)

The portion of your equity that's reserved as collateral for your currently open positions.

Usable Margin (UsblMr)

What's left to open new trades. Always equal to Equity − Used Margin.

01
Step 1

Open the account

Assume you have opened a Live ActTrader account, and deposited $10,000.

When you first login, you will see the 10,000 in the Equity column of your Account Information window. You will also see that the UsdMr ('Used Margin') is 0.00, and that the UsblMr ('Usable Margin' or 'Available Margin') is 10,000, as pictured below:

Account Information — $10,000 deposit, no open positions. Click to enlarge.
The numbers right now
Equity
$10,000.00
Used Margin (UsdMr)
$0.00
Usable Margin (UsblMr)
$10,000.00
02
Step 2

The relationship between Equity and Margin

Your Usable Margin will always be equal to Equity less Used Margin. Therefore it is the Equity, not the Balance, that is used to determine Usable Margin and will determine if and when a Margin Call is reached.

As long as your Equity is greater than your Used Margin, you will not have a Margin Call. As soon as your Equity falls below your Used Margin, you will receive a margin call.

Remember this formula
Usable Margin = Equity Used Margin
If Equity drops below Used Margin — Margin Call.
03
Step 3

Buy 20 lots of USD/JPY

Now assume that you buy 20 lots of USD/JPY. Your Equity remains $10,000. Used Margin is now $1,000, because the margin requirement in an ICTS Forex account is $50 per lot. Usable Margin is now $9,000 (Equity less Used Margin, as pictured below):

After buying 20 lots USD/JPY — $1,000 of equity is now reserved as Used Margin. Click to enlarge.
The numbers right now
Equity
$10,000.00
Used Margin (20 lots × $50)
$1,000.00
Usable Margin (10,000 − 1,000)
$9,000.00

If you were to close out the 20 lots of USD/JPY (by selling it back) at the same price at which you bought it, your Used Margin would go back to 0.00 and your Usable Margin would go back to $10,000. Your Equity would remain unchanged at 10,000.

Try this yourself, risk-free

A free demo account gives you the same $10,000 starting balance, same ActTrader platform, same margin behaviour — with virtual funds.

04
Step 4

Add to the position — 30 lots total

But instead of closing the 20 lots, assume instead that you purchased 10 more lots of USD/JPY, for a total of 30 lots of USD/JPY. You will now have the same Equity, but your Used Margin will be $1,500 (30 lots at $50 margin per lot). And your Usable Margin will now be only $8,500.

The numbers right now
Equity
$10,000.00
Used Margin (30 lots × $50)
$1,500.00
Usable Margin (10,000 − 1,500)
$8,500.00
05
Step 5

What triggers a Margin Call

With this position on, you will make a large profit if USD/JPY rises. We will illustrate a Margin Call that occurs when USD/JPY falls. Assume that USD/JPY starts to fall. You are long 30 lots, so you will see your Equity fall along with it. Your Used Margin will remain at $1,500.

Margin Call Triggered

Once your Equity drops below $1,500, you will have a Margin Call. This means that some or all of your 30-lot position will immediately be closed at current market prices.

The closed position will show up in your Reports or History with the MC code next to it.

The takeaway: leverage amplifies both directions. The bigger the position, the smaller the price move needed to drag your Equity into margin-call territory.

Key takeaways

What to remember

  • Usable Margin = Equity − Used Margin. This formula is the entire game. Memorise it.
  • Equity, not Balance, is what counts. Open-position P&L moves Equity in real time. Balance only updates when you close positions.
  • In an ICTS Forex account, margin is $50 per lot. Other GCI platforms and instruments have their own margin requirements — see Spreads & Margins for the full list.
  • When Equity falls below Used Margin → Margin Call. Positions get auto-closed and tagged MC in your history.
Practice without risk

Open a free demo with virtual funds and try the example above yourself.

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