back) at the same price at which you bought it, your Used Margin would go back.00 and your Usable Margin would go back to 10,000. You open a mini account and deposit 10,000. You will also see that the Used Margin.00, and that the Usable Margin is 10,000, as pictured below: Your Usable Margin will always be equal to Equity less Used Margin. This is how your account will look if it EUR/USD drops.1975 or -25 pips. You blew 20 of your trading account! Often, closing one losing position will take the margin level Forex higher than 5, as it will release the margin of that position, so the total used margin will decrease and consequently the margin level will increase.
By other means, this is the way brokers inform you about a heavy loss in your trade. Margin calls can be effectively 100 payout binary options avoided by carefully monitoring your account balance on a regular basis, and by using stop-loss orders on every position to minimise the risk. So 1/pip X 80 lots 80/pip, if EUR/USD goes up 1 pip, your equity increases. Because you had at least 10,000, you were at least able to weather 25 pips before his margin call. It is important to note that it starts closing from the biggest losing position. Used Margin is now 100, because the margin required in a mini account is 100 per lot. Your broker takes your margin deposit and then pools it with someone else's margin. When your account equity equals the margin, you will not be capable of taking any new positions. Oh we almost forgetwe didnt even factor in the spread! Assume you are a successful retired British spy who now spends his time trading currencies.