Hi, I recently started reading trading guides and come across explanations on margin calls. For example: http://ift.tt/1skLkXL
I have traded mini accounts and as far as I know the risk limit a trade carries is the amount of the margin used. For example, $100 USD taking out 1:100, a position £10,000. The maximum loss would be the £100 involved. In nowhere had I come across the 'usable margin' or my balance as the maximum loss--or when it triggers margin call as suggested in the above article.
Hence I am extremely perplexed and confused over this.
Hope you can tell me what is going on.
Many thanks!
Sailfish
I have traded mini accounts and as far as I know the risk limit a trade carries is the amount of the margin used. For example, $100 USD taking out 1:100, a position £10,000. The maximum loss would be the £100 involved. In nowhere had I come across the 'usable margin' or my balance as the maximum loss--or when it triggers margin call as suggested in the above article.
Hence I am extremely perplexed and confused over this.
Hope you can tell me what is going on.
Many thanks!
Sailfish
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