Before you say it, I know its the stupid thing to do, starting on a budget but I just want to do see if I’ve understood all of the leverage risks and calculations so if anyone could confirm?
So, open a micro account, leverage 200:1 and with �300
This means I can effectively trade with �60,000 and if I were to go long �20K on GBP/CHF at 1.80000, each pip has a value of �1.1111
Because I’ve used 1/3 of my own money, I can afford to lose 2/3 before I get a margin call so as long as I don’t have a floating P/L of �200, I shouldn’t be margin called?
�200 / 1.1111 = 180 so the price could drop 180 pips before the margin call?
Once again, this is hypothetical before I get told not to do it!
Edit: Meant to say, this is with no stop loss too