How Is the Margin for a Commodities Position Calculated?
The margin for a Commodities position is its exposure (notional value) divided by the instrument's leverage. Exposure is the lot size multiplied by the price, so the formula is: margin = (lot size × price) ÷ leverage. At illustrative reference prices, 1 lot of gold (XAUUSD, 1 troy ounce at US$4,300, 100x) needs US$43.00 of margin, 1 lot of silver (XAGUSD, 10 troy ounces at US$70, 20x) needs US$35.00, and 1 lot of Brent crude (UKOUSD, 10 barrels at US$80, 50x) needs US$16.00. More lots need proportionally more margin: 2 lots of gold at the same price need US$86.00. These prices are examples, not live quotes, so the margin for your order depends on the live price when you place it. The order page shows the exact Est. Margin Required, which can be slightly higher than this simple calculation. The margin comes from your USD Margin (Commodities) wallet and backs the position while it is open; it is not a fee.
| Instrument | Lot size | Illustrative price | Exposure | Max leverage | Margin for 1 lot |
|---|---|---|---|---|---|
| XAUUSD (gold) | 1 troy ounce | US$4,300 per troy ounce | US$4,300 | 100x | US$43.00 |
| XAGUSD (silver) | 10 troy ounces | US$70 per troy ounce | US$700 | 20x | US$35.00 |
| UKOUSD (Brent crude) | 10 barrels | US$80 per barrel | US$800 | 50x | US$16.00 |
- Used margin and margin level: The margin of all your open Commodities positions together is your used margin. Your margin level is your equity (balance plus unrealized P&L) divided by your used margin × 100%, calculated across the whole USD Margin (Commodities) wallet (cross margin). The margin call, your first warning, comes at 80% (the app shows this level as the Maintenance Margin). At 70% you get a second warning, and new orders that add risk are blocked until your margin level is back above 80%. Liquidation starts at 50%.
- Fees are separate from margin: Pluang currently charges no transaction fee on Commodities (0%). The JFX & KBI fee is US$0.10 per lot, capped at US$1 per order, on opening and on closing, and 11% VAT applies to it and to swap charges. The spread is already built into the price you see. Swap is shown in pips per lot and is charged or credited on positions held past the daily rollover.
- Keep a buffer: A wallet holding only the margin for your positions has almost no buffer before the 80% margin call. Pluang recommends depositing well above the bare margin.
Related questions:
Q: What are used margin and margin level?
Used margin is the total margin held by all your open Commodities positions. Margin level is your equity divided by your used margin, calculated at wallet level across every open position in USD Margin (Commodities). Because it's cross margin, a loss on one position lowers the margin level for all of them. At 80% you get a margin call, your first warning. At 70% you get a second warning, and new orders that add risk are blocked until your margin level is back above 80%. At 50%, Pluang closes your worst-performing position in full, then checks your margin level again. If it's still at 50% or below, it closes the next one.
Q: What happens to the margin when I add lots to an existing position?
More lots need proportionally more margin, because margin is based on the exposure of the position. When you add lots in the same direction to an instrument you already hold, they merge into one position at a weighted-average entry price. For example, 1 lot of gold opened at US$4,000 plus 1 lot opened at US$5,000 becomes 2 lots at an average entry of US$4,500. These prices are illustrative only.
Q: Do I need more money in my wallet than the margin?
Yes, Pluang recommends it. For example (illustrative), if you deposit US$100 and open 1 lot of gold Long at US$4,300, the margin used is US$43.00 and the opening fees are about US$0.11, leaving a balance of US$99.89 and a margin level of about 232%. Ignoring swap and closing fees, the 80% margin call would come with gold at about US$4,234.51 (−1.52%), the 70% second warning at about US$4,230.21 (−1.62%) and the 50% liquidation at about US$4,221.61 (−1.82%). With only US$45 deposited (a balance of US$44.89, about 104%), the margin call would come after a fall of about US$10. You can add funds by moving USD from USD Cash, or by converting from your Rupiah balance.
Q: Is the margin a fee that Pluang keeps?
No. The margin is part of your own balance in USD Margin (Commodities) that backs your open positions; it is not a charge. Your costs are the JFX & KBI fee with 11% VAT, and any swap charges, which also carry VAT. When you close a position, the realized profit or loss is credited to your USD Margin (Commodities) wallet. Margin funds are held in a segregated account at Bank Artha Graha.