Okay, suppose I open 1 lot long when the exchange rate between the Euro and the Dollar is 1.00....
At 2%, leverage the margin for 1 lot is $2000.
Easy enough.
But as the price goes to $1.10, the margin requirement is $2,200 (1.10 x 2000)
My question is, is the margin calculated off of the exchange rate's bid or ask?
My gut says it is the higher of the two, the ask.
At 2%, leverage the margin for 1 lot is $2000.
Easy enough.
But as the price goes to $1.10, the margin requirement is $2,200 (1.10 x 2000)
My question is, is the margin calculated off of the exchange rate's bid or ask?
My gut says it is the higher of the two, the ask.