@ Windhu:
Margin Level = (Equity / Total Margin) x 100%
In this case you will get a Margin Call (MC) if Margin Level = 50%, and will get a stop out (SO) if Margin Level = 20%.
Leverage 1:888, or = (1/888), or 0.11% of the contract value. Contract value in forex trading = USD 100,000.
Trading volume = 0.1 lot.
For example: You are trading EUR/USD. You buy or sell
0.1 lot EUR/USD at a price of 1.1700, then the margin = (USD 100,000) x 0.1 x 0.11% x 1.1700 = USD 12.87.
You will get MC when Margin Level = 50%, or (Equity / USD 12.87) = 50%, which is when your Equity = USD 12.87 x 50% =
USD 6.44.
You will get SO when Margin Level = 20%, or (Equity / USD 12.87) = 20%, which is when your Equity = USD 12.87 x 20% =
USD 2.57.
Value per pip of 0.1 lot EUR/USD is
USD 1.
1. If
initial capital = USD 1,000, then you will get
MC when the floating loss reaches = (USD 1,000 - USD 6.44) / USD 1 =
993 pips. And will get
SO when the floating loss reaches = (USD 1,000 - USD 2.57) / USD 1 =
997 pips.
2. If
initial capital = USD 3,000, then you will get
MC when the floating loss reaches = (USD 3,000 - USD 6.44) / USD 1 =
2993 pips. And will get
SO when the floating loss reaches = (USD 3,000 - USD 2.57) / USD 1 =
2997 pips.