Little help with the Stop Out Level

Beginner Questions
1

The Scenario: Balance of $1000, bought USD/CHF at 1 mini lot, with $200 Required margin. With a 960 pip/dollar floating loss.

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In the image above, for 20% Margin level, the used margin drops down to $40.00

Why is this? Because the entire point of Stop Level being at 20% is to show that it’s gone below the amount of Used Magin which is originally $200. (40/200*100 = 20%) If the used Margin was 40 and your equity dropped to 40, it’d be 100%

2

When your P/L drops another $160, there’s only $40 left over, which has to go to Used Margin. Stop Out Level = Margin Level @ 20%, which is 20% of $200 or $40 in this example.

The 20% is applied to the margin level.

Here’s the other lesson.