Forex margin level 100
A:When an investor uses a margin account, he or she is essentially borrowing to increase the possible return on investment. Used margin is the amount of money used to hold open positions. Free margin is the amount of funds available to place additional positions (see image below)The margin level is calculated by dividing the current equity in an account by the current amount of margin in use (used margin). ( view figure 2 ) After dividing the equity by the margin move the decimal two places to the right.
At 100% margin level a trader is essentially using their entire available margin. I do not understand why this is the case.I would think that as long as the equity in the account is equal to or greater than the amount required to open the position that the trade could be sustained.I can see a margin call if a fluctuation of forex margin level 100 pip would bring the equity below this amount Trading ContestsWin cash prizes and community reputation in our unique, intelligenty moderated forex trading contests where every participant gets a fair chance.
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Level forex margin 100