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Old 08-02-2008, 05:33 AM
arun
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Default About Margin

Hi there,

Assume Iam a short term trader and place my stop loss 50 pips below my entry point(EUR/USD).
50 pips= $1000
1 pips=$20

with 20:1 levarage,my trade size will be $200,000. this trade will require $10,000 in my trading account.

If the trade is stopped(hit my stop loss price), do i lose $1000 only or do i get a margin call for $20,000(50*20*20)?

thanks for your help
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