Hi All,
Sorry for the rookie question. I would like some help on trying to understand how the margin call would happen, the broker has mentioned if your equity is below 50% you will get a margin call/positions closed. Is my below example correct ? if not can you correct it so I can make sense of it all please.
If my Account Balance is $1,000 and I buy 1 mini Lot of Gold @ 1300 using margin .7% =$91.00 (margin required) total notional $13,000
Remaining equity in my account would be $909
If Gold moved down to $1250, my running PnL would $503.50 (10 x $50 + variation margin $3.50) my remaining Equity would $496.50
Equity in percentage 496.50/1000 = 49.65% So now I would get a margin call ?
Thanks,
Sorry for the rookie question. I would like some help on trying to understand how the margin call would happen, the broker has mentioned if your equity is below 50% you will get a margin call/positions closed. Is my below example correct ? if not can you correct it so I can make sense of it all please.
If my Account Balance is $1,000 and I buy 1 mini Lot of Gold @ 1300 using margin .7% =$91.00 (margin required) total notional $13,000
Remaining equity in my account would be $909
If Gold moved down to $1250, my running PnL would $503.50 (10 x $50 + variation margin $3.50) my remaining Equity would $496.50
Equity in percentage 496.50/1000 = 49.65% So now I would get a margin call ?
Thanks,