I just just running some figures through a calculator to see what everyone complaining about the 50:1 leverage rules were seeing and now I'm really confused.
It seems as if you couldn't do something as simple as take a 5% trade.
Here's what I'm seeing. If you had a $1,000 account and wanted to place a trade that risked a total of $50 (5%) matched to a 10 pip stop loss, then you'd need to secure a 0.50 lot position.
This would require $1,235 in required margin. That's more than is in the account! Doesn't make sense to me. Can someone explain where my thinking is bent on this?
It seems as if you couldn't do something as simple as take a 5% trade.
Here's what I'm seeing. If you had a $1,000 account and wanted to place a trade that risked a total of $50 (5%) matched to a 10 pip stop loss, then you'd need to secure a 0.50 lot position.
This would require $1,235 in required margin. That's more than is in the account! Doesn't make sense to me. Can someone explain where my thinking is bent on this?