Leverage + Risk Management?

Ok I cannot figure this out. Sorry this might be very simple but I cant wrap my head around this. I have a $1000 account, using 10:1, risking 2% each trade. I want to open a position on EUR/USD with a 150 pip stop loss.

Balance: $1000
Leverage: 10:1
Risk per trade: 2%

EUR/USD
SL: 150 pip


I completely understand this. The risk is $20 because 2% of 1000 is 20.


I understand that the Trade Value is 10x the Margin Required because I'm using 10:1. But can someone please explain the Margin Required? Shouldnt it be $20?

You are trading EURUSD - base currency here is EUR.

So now you want to trade 1333 units of this base currency, which at the given exchange rate leads to the shown 1575 USD.

Finally you are trading with a leverage of 10:1 resulting in a required margin of 157,55 USD (1/10th of full amount necessary). The margin is always calculated on the amount of money needed for your trade measured in the currency of your account.


Nothing more, nothing less.
Hope that clears it up for you.