Quote:
Originally Posted by edacsac
Thanks Daydreamer65. I think I'm understanding better. The $23.70 is locked up as used margin, so the 2% MM theory comes off the top of my remainder of margin available, totaling $19.52.
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Most people figure the 2% off their pre-trade account balance. In your case that would be off the $1000, so you would risk $20. This risk is not the same as your margin requirement.