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?
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?