We present a novel approach to calculate the effective exchange interaction parameters based on the realistic electronic structure of correlated magnetic crystals in local approach with the frequency dependent self energy. The analog of ``local force theorem in the density functional theory is proven for highly correlated systems. The expressions for effective exchange parameters, Dzialoshinskii- Moriya interaction, and magnetic anisotropy are derived. The first-principle calculations of magnetic excitation spectrum for ferromagnetic iron, with the local correlation effects from the numerically exact QMC-scheme is presented.
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