1) Margin Call point at full margin
For any pair, when you take full margin position, then margin call pips Im are independent of your balance.
rule: Im = S*C*YYYXXX
S: is your broker stop-out level margin level
C: is 100,000 / (10^(5-D)*Leverage) ===> 5 because of log(CZ)=Log(100,000) = 5
CZ: Contract Size
YYYXXX is the price of the pair
D: is the Digits of the pair after comma
example: GBPJPY
your balance is 10,000 USD.
S: 50% (value of 0.50)
YYYDDD = 132.890 ===> Then D=3 (3 digits after decimal point)
Leverage = 100 =====> C=100,000/(10^(5-3)*100 )= 100,000/(10^(2)*100 )=100,000/(10^2*100 )=100,000/(100*100 ) = 100,000/10,000=10
C=10
then Im = S*C*YYYXXX = 0.50*10*133.12 = 665.6 Pipette = (66.56 pips)
after 66 pips you will reach margin call point.
did we substitute for your balance in our solution?
No, Im is independent of your balance.
For any pair, when you take full margin position, then margin call pips Im are independent of your balance.
rule: Im = S*C*YYYXXX
S: is your broker stop-out level margin level
C: is 100,000 / (10^(5-D)*Leverage) ===> 5 because of log(CZ)=Log(100,000) = 5
CZ: Contract Size
YYYXXX is the price of the pair
D: is the Digits of the pair after comma
example: GBPJPY
your balance is 10,000 USD.
S: 50% (value of 0.50)
YYYDDD = 132.890 ===> Then D=3 (3 digits after decimal point)
Leverage = 100 =====> C=100,000/(10^(5-3)*100 )= 100,000/(10^(2)*100 )=100,000/(10^2*100 )=100,000/(100*100 ) = 100,000/10,000=10
C=10
then Im = S*C*YYYXXX = 0.50*10*133.12 = 665.6 Pipette = (66.56 pips)
after 66 pips you will reach margin call point.
did we substitute for your balance in our solution?
No, Im is independent of your balance.