if i use 1:1 leverage , and suppose that the market is going against me , then the broker has no right to control over my account i.e he cant close my position whatever the price moved against me , is that correct or not ???
The answer to your question has two parts, a theoretical part and a practical part. In theory, it could be necessary for your broker to intervene in your account with a forced liquidation, even if you are using only 1:1 actual leverage. But, as a practical matter, it will never happen. Let’s look at both situations.
In theory
Because brokers require margin on every trade, it would be possible (in theory) for you to lose all of your account down to the level of the maintenance margin, at which point your broker would intervene and close your position. This is referred to as forced liquidation, and it would occur regardless of the amount of actual leverage you used in your trade.
Example
If your broker requires initial margin of 2%, then maintenance margin would (typically) be half of that amount, or 1% of the notional value of your trade.
So, if you entered a one-micro-lot position in USD/CAD, for example, in a $1,000 account, then you would be using 1:1 actual leverage. Your position would be worth $1,000, and maintenance margin would be $10 (that’s 1% of the $1,000 notional value of your position).
In this example, you could lose $990 of your $1,000 account, but not that last $10 (the maintenance margin amount). Once your account was closed by forced liquidation, that $10 would be all that remained in your account.
In practice
As a practical matter, you could never lose anywhere near that amount, if you were holding your actual leverage to 1:1. By definition, using 1:1 leverage, your account would be equal in value to your position. So, for your account to go to zero, the notional value of your position would have to go to zero.
Forex pairs do not lose 100% of their value. In fact, if you study any number of currency pairs, going back decades in time, you will find that even a 50% decline is extraordinary.
It should be obvious to you that a single position in a single currency pair cannot lose enough value to wipe out your whole account (assuming 1:1 actual leverage). But, what about multiple positions open at the same time?
Suppose you enter a large number of correlated positions — say, long USD/CAD, long USD/JPY,
long USD/CHF, short EUR/USD, short GBP/USD, short AUD/USD, and short NZD/USD. And suppose the total notional value of these 7 positions is exactly $1,000.
Once again, your total actual leverage used is 1:1. However, in this case, each of your positions is worth (on average) only $142.86 (that’s $1,000 ÷ 7).
Assuming for convenience that all the currencies hold their value, except the USD, how much would the USD have to decline in value in order to consume your entire $1,000 account?
I won’t bore you with the math, but you might be surprised to learn that, once again, the USD would have to go to zero — become worthless — in order for your total loss to reach $1,000.
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clear explanation , thank you clint