8/1★【EA Beginner’s Course】When the yen weakens, the required margin increases

FX Auto Trading, the Reiwa’s Double-I is.

From this month, truly fitting the title “EA Beginner Course,”

we will once again explain from the very basics.

“From now on, not only FX but also starting EA operation!”

we will deliver to those who are seriously considering this.

【When the yen depreciates, required margin increases】

In FX, there is a margin trading called “leverage.”
In domestic FX accounts, the maximum is up to 25x.
(For domestic corporate FX accounts, it fluctuates around 50x)

In other words, you can trade up to 25 times your available trading funds.
(Strictly speaking, if you exceed that even slightly, you will be liquidated = expelled.)

With 100,000 yen of trading capital, you can trade up to 2,500,000 yen,
with 1,000,000 yen, up to 25,000,000 yen, and so on.

And,
the term “required margin” has appeared, but
if we mention the earlier example
“With 100,000 yen of trading capital, 2,500,000 yen”
means “to trade 2,500,000 yen, you need at least 100,000 yen in funds.”

In other words, this is the “minimum required margin.”

Now, let's actually calculate the required margin for USD/JPY.

＜Assumptions＞
1 USD = 150 JPY
0.1 lot (10,000 units)
Leverage 25x

Now, 10,000 units means “10,000 dollars” at this time.

In the case of EUR/JPY, it would be “10,000 euros,” and in GBP/JPY, “10,000 pounds.”

Since 1 USD is 150 JPY, 10,000 USD equals 1,500,000 JPY.
Originally, to hold 0.1 lot, 10,000 units, you would need 1,500,000 JPY, but
in FX, you can use leverage via margin trading.

As noted, domestic FX accounts cap at 25x,
so you just divide 1,500,000 by 25.

150 ÷ 25 = 6

So,to hold 0.1 lot (10,000 units) in FX, the minimum margin required is 60,000 yen.
This is the required margin.

To recap the calculation:

（1 USD）150（yen）×10000 units（10,000）÷（Leverage）25（x）＝6（ten thousand yen）

This is how it works.

【What if 1 USD was 100 JPY?!】

Then, how much would the required margin be if 1 USD were 100 JPY?

Plugging into the previous formula

（1 USD）100（yen）×10000 units（10,000）÷（Leverage）25（x）＝4（ten thousand yen）

So it would be 40,000 yen.

As you can see, the required margin varies depending on the value of 1 USD.
This is the same for EUR/JPY and GBP/JPY.

This calculation is absolutely essential knowledge for trading, so please remember the principle.

Now, you may have noticed that
the more the yen weakens, the higher the required margin becomes.

When 1 USD is 75 JPY, it’s 30,000 yen; when it’s 150 JPY, it’s 60,000 yen.

The amount changes drastically, so please be careful.

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【Flow from Starting EA to Intermediate】

First, mastering the installation of the EA is important.

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MT4 EA (Expert Advisor) and Indicator Installation Procedures

https://www.gogojungle.co.jp/post/1/8212

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※GoGoJungle Video Version※

Even at first, not everything can be understood at once, and some may stumble.

I also stumbled many times at the beginning, so just take your time and you’ll be fine!

If you have questions, use the “Inquiry Form” available!

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https://www.gogojungle.co.jp/inquiry

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【How to Choose EA】

Now that you think you can operate an EA,

you might wonder, “I can’t tell which EA will win… I don’t want to lose….”

So, Reiwa’s Double-I has published the following articles to help you with a “backtest” to judge the quality to some extent.

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https://www.gogojungle.co.jp/finance/navi/series/1714

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backtesting supports it.

Backtest periods are usually longer than forward periods, and

whether you happen to win in forward testing can be inferred by mastering backtest evaluation methods.

【How to manage EA risk!?】

And no matter how excellent an EA seems,

if you neglect risk management in FX, it will collapse.

So for EA,how to manage risk?

The following articles answer this.

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■“How to calculate EA risk management”

https://www.gogojungle.co.jp/finance/navi/articles/64703

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【EA Operation Mindset is Important】

And,to sustainably operate EA for a long time, the “EA operation mindset” is also important.

For those articles,

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12/30★ Year-end and New Year SP!! EA Thorough Course Part 3

https://www.gogojungle.co.jp/finance/navi/articles/80551

8/12【Obon Holiday Special!】 Now you too can master EA! “Mindset for Improving EA Operation”

https://www.gogojungle.co.jp/finance/navi/articles/72829

8/17【Obon Holiday Special!】 Now you too can master EA! “Notes during EA operation”

https://www.gogojungle.co.jp/finance/navi/articles/73797

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So,

the content is substantial and highly important,

even if you cannot understand it immediately, be sure to read through!

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【Reiwa’s Double-I-EA Listing】

https://www.gogojungle.co.jp/users/112481/products

Specifically categorized EA by genre of Reiwa’s Double-I-E

https://www.gogojungle.co.jp/finance/navi/articles/67162

(Diversification by genre is essential when building a portfolio)

━━━━━━━━━━━━━━━

【Serial articles of Reiwa’s Double-I】

■ EA Beginner Course

https://www.gogojungle.co.jp/finance/navi/series/1700

--------------------------------

https://www.gogojungle.co.jp/finance/navi/articles/64703

https://www.gogojungle.co.jp/finance/navi/articles/65978

https://www.gogojungle.co.jp/finance/navi/articles/64738

https://www.gogojungle.co.jp/finance/navi/articles/65619

https://www.gogojungle.co.jp/finance/navi/series/1714

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■How to find a winning EA from backtests

https://www.gogojungle.co.jp/finance/navi/series/1701

https://www.gogojungle.co.jp/finance/navi/articles/64723

--------------------------------

https://www.gogojungle.co.jp/finance/navi/articles/65010

https://www.gogojungle.co.jp/finance/navi/series/610

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【Reiwa’s Double-I: Our Philosophy】

Develop EA with proper methods,

and kindly serve a broad audience,

maintain a lasting WIN-WIN relationship, to

stimulate the EA market and improve literacy.

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【When the yen depreciates, required margin increases】

In FX, there is a margin trading called “leverage.”In domestic FX accounts, the maximum is up to 25x.(For domestic corporate FX accounts, it fluctuates around 50x)

In other words, you can trade up to 25 times your available trading funds.(Strictly speaking, if you exceed that even slightly, you will be liquidated = expelled.)

With 100,000 yen of trading capital, you can trade up to 2,500,000 yen,with 1,000,000 yen, up to 25,000,000 yen, and so on.

And,the term “required margin” has appeared, butif we mention the earlier example“With 100,000 yen of trading capital, 2,500,000 yen”means “to trade 2,500,000 yen, you need at least 100,000 yen in funds.”

In other words, this is the “minimum required margin.”

Now, let's actually calculate the required margin for USD/JPY.

＜Assumptions＞1 USD = 150 JPY0.1 lot (10,000 units)Leverage 25x

Now, 10,000 units means “10,000 dollars” at this time.

In the case of EUR/JPY, it would be “10,000 euros,” and in GBP/JPY, “10,000 pounds.”

Since 1 USD is 150 JPY, 10,000 USD equals 1,500,000 JPY.Originally, to hold 0.1 lot, 10,000 units, you would need 1,500,000 JPY, butin FX, you can use leverage via margin trading.As noted, domestic FX accounts cap at 25x,so you just divide 1,500,000 by 25.

150 ÷ 25 = 6

So,to hold 0.1 lot (10,000 units) in FX, the minimum margin required is 60,000 yen.This is the required margin.

To recap the calculation:

（1 USD）150（yen）×10000 units（10,000）÷（Leverage）25（x）＝6（ten thousand yen）

This is how it works.

【What if 1 USD was 100 JPY?!】

Then, how much would the required margin be if 1 USD were 100 JPY?

Plugging into the previous formula

（1 USD）100（yen）×10000 units（10,000）÷（Leverage）25（x）＝4（ten thousand yen）

So it would be 40,000 yen.

As you can see, the required margin varies depending on the value of 1 USD.This is the same for EUR/JPY and GBP/JPY.

This calculation is absolutely essential knowledge for trading, so please remember the principle.

Now, you may have noticed thatthe more the yen weakens, the higher the required margin becomes.

When 1 USD is 75 JPY, it’s 30,000 yen; when it’s 150 JPY, it’s 60,000 yen.

The amount changes drastically, so please be careful.

In FX, there is a margin trading called “leverage.”
In domestic FX accounts, the maximum is up to 25x.
(For domestic corporate FX accounts, it fluctuates around 50x)

In other words, you can trade up to 25 times your available trading funds.
(Strictly speaking, if you exceed that even slightly, you will be liquidated = expelled.)

With 100,000 yen of trading capital, you can trade up to 2,500,000 yen,
with 1,000,000 yen, up to 25,000,000 yen, and so on.

And,
the term “required margin” has appeared, but
if we mention the earlier example
“With 100,000 yen of trading capital, 2,500,000 yen”
means “to trade 2,500,000 yen, you need at least 100,000 yen in funds.”

＜Assumptions＞
1 USD = 150 JPY
0.1 lot (10,000 units)
Leverage 25x

Since 1 USD is 150 JPY, 10,000 USD equals 1,500,000 JPY.
Originally, to hold 0.1 lot, 10,000 units, you would need 1,500,000 JPY, but
in FX, you can use leverage via margin trading.

As noted, domestic FX accounts cap at 25x,
so you just divide 1,500,000 by 25.

So,to hold 0.1 lot (10,000 units) in FX, the minimum margin required is 60,000 yen.
This is the required margin.

As you can see, the required margin varies depending on the value of 1 USD.
This is the same for EUR/JPY and GBP/JPY.

Now, you may have noticed that
the more the yen weakens, the higher the required margin becomes.