What is Margin Impact and how do you calculate it?
When you place an order with MyBro, you see an indicator called Margin Impact. It shows how the buying power available to you on your trading account changes as the result of the order execution.
Since margin trading means the use of leverage, to open a position of a certain size, you need funds less than the position size. These funds are taken out of your Usable Margin and moved to Used Margin to serve as collateral for the open position. It is Margin Impact that shows how much money will be moved, hence by how your buying power will change, when you open a new position.
Basically, Margin Impact is the difference between what you have as Usable Margin now and what you will have right after, when the position opens.