Hello all!
First of all thank you so much for this great forum, and especially the school section! The school is amazing and I am learning a lot every day. (Currently in 8�Th grade)
But I need to understand some things about margin and money management, before I can go on learning. Let me get straight to the point…
I am currently using Oanda demo account and pretending that it’s a 100% real thing.
Lets say I open a micro account with 1.000$, with a 10:1 margin rate.
My maximum risk per trade: 1% of 1.000$ = 10$
1 pip = 0.10$
Maximum pip loss per trade: 10$ / 0.10 = 100 pips
(Am I right so far?)
Ok, let�s say I want to go long on EUR/USD at a rate of 1.3474
I buy 1.000 units of EUR and the market window is “telling” me that my “Margin used” is 134,74$ and “Margin available” is 889,50$
That’s where I get lost…What does the 134,74$ mean? That I can lose maximum 134,74$ if everything goes wrong?
I hope you can understand my question, and thanks in advance for the answer