Fundamental Question - Margin

Hi folks,

I'm still in the learning mode and hope someone can clarify some of the pure fundamentals. I believe in strong fundamentals first.

This question is regarding at what point in time the trader will lose his margin.

The base maths;

Account Size: 1000
Base Currency: USD
Pair : EURUSD
Leverage : 1:100
Broker Margin requirement : 1%
Lot Size : 0.1 (mini)
Pip Value : $1

Assuming the current exchange is 1.1500, the margin required to open a 0.1 lot is USD $115 (this is 11.5% of the account, but let's ignore this factor now)

So, for me to open a 0.1 lot with the broker, I have to put $115 given my leverage is 1:100.
The maximum SL for this trade is 115 pips.

Questions;
1. Am I right, if the price moves 115 pips against me then I lose my margin? (opposite, if it moves 115 pips in my favour then I make $115)
2. At what point in time that I get the margin call and then stopped out ?
3. Is it possible to lose more than $115 in this trade if the SL is at 115 pips ? (lets ignore the slippage)
4. Can I lose my account? (meaning getting wiped out)
5. Anything else that I need to be aware or anything is hidden apart from swap, commission, spread?

Hope you can give some advice.

Thanks

start with smallest lot until you start reaping profit in 5o trades,i would suggest ,go for 0.01 - 0.02 lot size,all the best!

One pip move if order size is one lot - 100000 USD*0.0001=10USD
Divide this value according to your lot size - for 0.1 lot it is 0.1*10=1USD

When margin reaches 30% brokers usually close your trade "stop" out. At 50% they usually issue margin call. I speak about this based on Hotforex requirements - 50%/30%. Other brokers can allow deeper drawdown. The higher leverage the more is "buffer" requirements, because during high volality like news times liqudity shrinks and there can be no counterparty in between 0 and 30%, in this case broker can increase margin requirements.

During sudden crashes when there is no liquidity on the market (very rare on Forex) your position can theoretically move into negative zone - you will owe to your broker.