Disliked{quote} Its equity that you use to open trades. Say your balance is 100k and your equity is 500k, you can open more positions. If then your equity dropped, your positions are still valid until you get to stop out level. Usually brokers will have 30% margin stop out level or 10% or 50%.Ignored
so your broker will stop you out by 10%, thats big broker risk over the weekend. heavy to see that any broker will do this risk , i only did see this with fake brokers.
calculate it:
your 500:1 leverage (whats already crazy) is with 200 lots 40.000 usd as margin. so your broker will get you a margin call by 4000 (if your broker has the 10%, but 10% is incredible low, the broker has big risks) and over the weekend the broker will have all the risk on his site to lose extrem big money? what a stupid broker is this? are you sure its real accounts, in demo i can understand it, but in real account the broker must be crazy and like to lose money with no advantage. only some pips move have extrem big value with 200 Lot.
for the rest: of course the margin will be calculated from equity (what else????), all will be calculated from equity, balance is useless in trading. but this normal fact will not help in your case until you are in win or have calculated moneymanagement.
edit:
now i rechecked on your broker website, now its really strange: your margin in your account is calculated by :
Balance Max Leverage
$1 000 1:1000
$5 000 1:500
$20 000 1:200
$100 000 1:100
∞ 1:33
so looks like you could only have this 1:33 or 1:100 leverage (but then you would be have stop out level triggered allready), or is your account a small cent account and this brokers calculates then the margin inside this cent account not as this balance in account and recalculate it as real money balance (so splitted by 100)?
at least this is a extrem strange broker.
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