A Margin Call will occur on a trader's account when: Usable Margin is less than 0 When a trader's Equity is less than Used Margin When positions are over-leveraged or trading losses produce insufficient equity to maintain current open positions, a…
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When you buy the EUR/USD pair, you are buying the euro, and selling the U.S. dollar to pay for it. If the euro interest rate is 4.00%, and the U.S. rate is 2.25%, you are buying the currency with the…
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When you use excessive leverage, a few losing trades can quickly offset many winning trades. To clearly see how this can happen, consider the following example. Scenario: Trader A buys 50 lots of USD/JPY while Trader B buys 5 lots…
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As a general rule of thumb, we recommend limiting total account leverage to a maximum of 10:1. For example, if you have an account balance of $10,000, you could trade a maximum position size twenty times larger than your account…
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