Though I have always thought that I absolutely knew terminology like Leverage, Margin Call, Lot size etc, it appears that I am stuck with a problem. Kindly guide.
I have an account with a capital of (let's say) 9,000$ with 888:1 Leverage. That means that I can purchase lots costing up-to (9000 x 888) = 7,992,000$. Currently I am working with US30Cash. Since my trading system is mostly about scalping, I go with 2.0 lots for each trade.
Recently, I have observed that my broker won't let me open new positions after 14 running trades. I thoroughly searched on the internet and came to know that when margin level drops below 100%, your broker doesn't allow you to open positions anymore. This is not understandable. My current running losses are only -400$ while account balance is 9000$, how come this push the margin level below 100% as the running losses are not even 5% of the current capital yet?
Kindly explain the situation and also guide how many positions can be opened in case of others like GBP/ JPY, Gold, Silver etc.
Your kindly help would be highly appreciated.
I have an account with a capital of (let's say) 9,000$ with 888:1 Leverage. That means that I can purchase lots costing up-to (9000 x 888) = 7,992,000$. Currently I am working with US30Cash. Since my trading system is mostly about scalping, I go with 2.0 lots for each trade.
Recently, I have observed that my broker won't let me open new positions after 14 running trades. I thoroughly searched on the internet and came to know that when margin level drops below 100%, your broker doesn't allow you to open positions anymore. This is not understandable. My current running losses are only -400$ while account balance is 9000$, how come this push the margin level below 100% as the running losses are not even 5% of the current capital yet?
Kindly explain the situation and also guide how many positions can be opened in case of others like GBP/ JPY, Gold, Silver etc.
Your kindly help would be highly appreciated.