Ok, so here's my question.
Account as follows, $5000 initial capital.
1:100 leverage
100k lot size
a pip=$10 P/L
EURUSD requires about $1300 to be held on margin per lot.
So a margin call occurs if equity drops below required margin of $1300.
that leaves $3700 left. Would that mean I would have to lose 371 pips($3710) if I purchase 1 lot before my position is closed?
With daily market volatility for EURUSD being about 175 pips, purchasing 1 lot per $5000 would give me enough room to place a safe stop right?
Account as follows, $5000 initial capital.
1:100 leverage
100k lot size
a pip=$10 P/L
EURUSD requires about $1300 to be held on margin per lot.
So a margin call occurs if equity drops below required margin of $1300.
that leaves $3700 left. Would that mean I would have to lose 371 pips($3710) if I purchase 1 lot before my position is closed?
With daily market volatility for EURUSD being about 175 pips, purchasing 1 lot per $5000 would give me enough room to place a safe stop right?