I have demo account in Oanda since few mothns ago but I have some confusion about their margin rules. I am used to 1:100 leverage and 1% margin.
For example in Eur/Usd:
1) Oanda offer 1:50 leverage, that means with $100 u control $5,000,so the value of 1 pips is $0.50. Is it correct?
2)Their margin requirement is 2% for 1:50 leverage so it means u need to have $200 in your balance in order to open that position.If your balance reduce to $100,the position will automically closed. Is it right?
Thanks for help.
For example in Eur/Usd:
1) Oanda offer 1:50 leverage, that means with $100 u control $5,000,so the value of 1 pips is $0.50. Is it correct?
2)Their margin requirement is 2% for 1:50 leverage so it means u need to have $200 in your balance in order to open that position.If your balance reduce to $100,the position will automically closed. Is it right?
Thanks for help.