Financial Calculations & Definitions

Spread

1. Definition

Spread is the difference between the Ask price (Buy price) and the Bid price (Sell price) of an instrument at a specific moment.

Spread represents the immediate transaction cost paid by the client when opening a position.

2. Formula

Screenshot 2026-03-02 at 14.18.36.png

Spread = Ask - Bid

Where:

3. Example

image.png

Spread is measured in the instrument price unit.

For instruments quoted against USD (e.g. USOUSD, WTI, BRENT, BTCUSD):

Unit = USD

Example:

Ask = 72.68
Bid = 72.36

Spread = 72.68 - 72.36 = 0.32

Result: 0.32 USD

4. Configuration

Screenshot 2026-03-02 at 14.56.32.png

Spread is configurable per symbol in CRM.

Location:

(CRM_URL)/ms/trading/configuration

Configuration is done separately for each symbol.

Field:

Spread

Example (from USO/USD configuration):


Static used margin

Overview

Static Used Margin is an optional fixed margin amount that can be applied to a trading position in addition to the standard margin.

This value is stored per order and per position and is included in the account’s total used margin calculation.

If not specified, static used margin defaults to 0.

Business Purpose

Static used margin exists to support cases where standard leverage-based margin alone is insufficient.

Purpose Description
Regulatory requirements Some jurisdictions require an additional fixed margin per position regardless of leverage.
External risk rules Liquidity providers or internal risk engines may require an additional fixed margin component.
Product-specific margin models Certain trading products may require a minimum margin per position.
Operational risk control Allows manual or automated systems to increase margin requirements for specific trades.

Impact on Client Accounts

When static used margin is applied:

This provides additional risk protection for the platform.

Margin Calculation

Position Used Margin Formula

Used Margin = Leverage Margin + Static Used Margin

Where:

Leverage Margin

Leverage Margin = Position Value ÷ Leverage

Example:

Parameter Value
Position Value €10,000
Leverage 1:10
Leverage Margin €1,000
Static Used Margin €200

Result:

Used Margin = 1000 + 200 = €1,200

Defaults

Field Default
static_used_margin 0

If not set:

Used Margin = Leverage Margin

Example Scenario

A broker introduces minimum margin per trade = €500.

Trade parameters:

Parameter Value
Position Value €4,000
Leverage 1:20

Leverage Margin:

4000 / 20 = €200

Minimum margin required = €500

Static margin applied:

static_used_margin = 300

Final used margin:

200 + 300 = €500

Summary

Attribute Description
Type Fixed additional margin
Level Per position
Default 0
Purpose Regulatory / risk / product margin rules
Effect Increases used margin and reduces free margin

 

Take profit / Stop loss - Distances and Validation

Overview

Take Profit (TP) and Stop Loss (SL) can be set when:

When TP or SL is enabled, the platform:

  1. Automatically fills default values

  2. Validates minimum distance from the reference price

  3. Clears the value if the option is disabled

The rules depend on the symbol group.

Symbol group Distance type
Crypto Percentage
Other instruments (Forex, indices, commodities, etc.) Pips / points

Symbol Groups

The system determines the rule set based on the symbol group.

Group Behavior
Crypto Percentage-based TP/SL
Other groups Pip / point-based TP/SL

Default TP / SL Values

When a user enables Take Profit or Stop Loss, the system automatically inserts a default value.

Asset class Side Default Take Profit Default Stop Loss
Crypto BUY Ask + 1% Ask − 1%
Crypto SELL Bid − 1% Bid + 1%
Other instruments BUY Ask + 100 pips Ask − 100 pips
Other instruments SELL Bid − 100 pips Bid + 100 pips

Important

Minimum Distance

TP and SL must be placed at least a minimum distance away from the reference price.

Asset class Minimum distance
Crypto 0.1% of reference price
Other instruments 1 pip

The system prevents users from placing TP or SL inside this restricted zone.

Validation Rules

BUY Orders

Rule
Take Profit must be above the reference price
Stop Loss must be below the reference price

Additionally:

SELL Orders

Rule
Take Profit must be below the reference price
Stop Loss must be above the reference price

Additionally:

Reference Price

The reference price used for TP/SL calculation depends on context.

Context Order type Reference price
New order MARKET Current Ask for BUY, Bid for SELL
New order LIMIT Limit price entered in the form
Modify order MARKET Order execution price
Modify order LIMIT Updated limit price (if edited), otherwise existing order price

Example Calculations

Crypto Example

Reference price:

BTC = 50,000
Value Result
Default TP 50,500
Default SL 49,500
Minimum distance 50

EUR/USD Example

Reference price:

Ask = 1.0850
Value Result
Default TP 1.0950
Default SL 1.0750
Minimum distance 0.0001

USD/JPY Example

Reference price:

Ask = 150.25
Value Result
Default TP 151.25
Default SL 149.25
Minimum distance 0.01

Where These Rules Apply

Order Form (New Orders)

When creating a new order:

Modify Order

When editing an existing order:

Key Principles

The system follows three main principles:

  1. Automatic defaults
    When TP/SL is enabled, reasonable default levels are provided.

  2. Minimum distance protection
    TP/SL cannot be placed too close to the reference price.

  3. Consistency across workflows
    The same rules apply when creating and modifying orders.

Summary

Feature Crypto Other Instruments
Default TP ±1% ±100 pips
Default SL ∓1% ∓100 pips
Minimum distance 0.1% 1 pip
Reference price Ask / Bid Ask / Bid

Defaults are intentionally larger than the minimum allowed distance, ensuring automatically generated TP/SL values always pass validation.

Trading Account Metrics

This section describes the financial and margin properties displayed in the trading account panel. These metrics represent the current state of a trader’s account, including capital, open position performance, and margin usage.

Displayed properties:

Balance
On Hold (displayed if exists)
Equity
Profit
Used Margin (displayed if exists)
Free Margin
Margin Level (displayed if Used Margin exists)
Leverage

1. Balance

Description

Balance represents the total funds in the trading account after all closed operations.

Balance reflects realized results only and does not include floating profit or loss from open positions.

Opening a position does not change Balance.

Balance Changes When

Formula

Balance =
Deposits
+ Closed Profits
- Closed Losses
- Completed Withdrawals
- Commissions
- Swaps
+ Adjustments

Simplified:

Balance = Previous Balance + Realized PnL

2. On Hold

Description

On Hold represents funds temporarily reserved for pending financial operations, such as withdrawal requests.

These funds are excluded from the amount available for trading until the operation is completed or cancelled.

Display Rule

Displayed only if On Hold > 0

Example

Balance = 10 000
On Hold = 3 000

Funds available for trading:

Available Balance = 7 000

3. Equity

Description

Equity represents the current real-time value of the account, including floating profit or loss from open positions.

Equity changes continuously as market prices move.

It is the primary value used for margin risk calculations.

Formula

Equity = (Balance − On Hold) + Profit

Where:

Profit = Floating PnL from open positions

4. Profit

Description

Profit represents the unrealized profit or loss from open positions.

It updates continuously based on market price changes.

Positive values represent profit, negative values represent loss.

5. Used Margin

Description

Used Margin represents the total collateral required to maintain all open positions.

Margin is not a cost and does not reduce the account balance. It represents funds temporarily reserved by the trading engine to support open positions.

Display Rule

Displayed only if Used Margin > 0

Total Used Margin

Used Margin = sum(margin of all open positions)

6. Free Margin

Description

Free Margin represents the amount of funds available to open new positions.

Free Margin decreases when:

Formula

Free Margin = Equity − Used Margin

7. Margin Level

Description

Margin Level represents the ratio between equity and used margin, expressed as a percentage.

It is the primary indicator of account risk and determines when margin call or stop-out conditions occur.

Display Rule

Displayed only if Used Margin > 0

Formula

Margin Level (%) = (Equity / Used Margin) × 100

8. Leverage

Description

Leverage defines the maximum trading exposure relative to the trader’s capital.

Higher leverage reduces the margin required to open positions.

Example

Leverage = 1:100

Meaning the trader can control:

100 units of market exposure for every 1 unit of capital

Account Calculation Relationships

The core account metrics are calculated using the following relationships:

Profit = Floating PnL

Equity = (Balance − On Hold) + Profit

Used Margin = sum(position margins)

Free Margin = Equity − Used Margin

Margin Level (%) = (Equity / Used Margin) × 100

Price Delta

Overview

Price Delta is a mechanism to simulate controlled price movement for a symbol over a defined time interval.

The system:

This feature is primarily used for:

Core Concepts

1. Time Range (From / To)

Defines the main active interval where the full price change is applied.

During this interval:

Price is shifted by the full configured delta

2. Price Delta (Pips)

Defines the magnitude of the price change.

Formula:

Adjusted Price = Base Price ± Delta

3. Smooth Change Steps

Defines how many incremental steps are used to gradually apply and remove the delta.

4. Step Duration

Defines how long each smoothing step lasts.

Full Behavior Model

The system consists of 3 phases:

1. Pre-Smoothing Phase

2. Active Phase

3. Post-Smoothing Phase

Example — Correct Timeline

Configuration

Parameter Value
Symbol EUR/USD
From 10:00
To 11:00
Delta +100 pips
Smooth Steps 10
Step Duration 10 minutes

Calculations

Timeline

08:20 → smoothing starts
10:00 → full +100 pips reached
10:00–11:00 → constant +100 pips
11:00 → smoothing down starts
12:40 → price returns to normal

Step Behavior

Pre-smoothing

08:20 → +10 pips
08:30 → +20 pips
...
09:50 → +100 pips
10:00 → full delta active

Active Phase

10:00 → 11:00

Price = +100 pips

Post-smoothing

11:00 → +90 pips
11:10 → +80 pips
...
12:40 → 0 pips

Visual Model

Price
  |
  |          ─────────────── (+100 pips)
  |        /                \
  |      /                    \
  |_____/                      \______
      ↑                        ↑
   smoothing              smoothing
     start                  end

Important Rules

1. Delta is Absolute

2. Smoothing Applies on Both Sides

3. No Instant Application

The system does NOT support:

All changes must follow:

defined timeline + smoothing

4. Time Validity

Edge Cases

1. Smoothing in the Past

If:

Then:

2. Zero Steps

If:

Smooth Steps = 0

Then:

3. Negative Delta

Works identically:

Delta = -50 pips

Result: