OK. So, here it says that you have an account with $1000 in the balance. And you open a position with 10,000 units (1 mini lot) that has a Required Margin. My question, maybe for some it will seem silly, which it is possible to be, but being at the beginning I would really like to understand, is: Why am I in the red by $800? That is, my account has $800 dollars free, which can be used in another possible position opening. Why am I down by 800 pips and implicitly by 800 dollars? I don’t see the meaning and it scratches my brain that I don’t understand something that somehow seems easy even for me. Help!
Margin is required to support an open position. This margin amount is still in your account, it is not lost or deducted. It is frozen so that you can not use it to support another position.
As your position goes into profit the free margin total increases.
Alright! That I understand! But the problem is that the frozen amount are those $200 not the $800. So if my $200 are blocked 'till I will close the position, those $800 I can open trades with (of course only if is over that Margin Call Level (100%)) are in the Free Margin zone. So the question is “Why I’m lossing $800 for?”.
Got it!!! I read the whole text as if it were a problem, and I thought it was a solution and the $800 would be in the minus for a certain aspect, for a certain calculation, hence my misunderstanding… After 8 hours of sleep, good , and a few questions on different sites, I discovered that the text actually refers to a possible event, which I did not understand. Sorry! But it’s better to ask than to stay stupid for life! Thank you for the help!