Margin percentage meaning!

Do you have any ideas what does it mean when a broker says we offer a margin percentage of 20% and also a leverage of 1:500 on a pair? how does it work?

It means that if your open equity losses reach 80% of your notional balance they reserve the right to close out your position(s), and they will.

It means that they are effectively unregulated and you have no protection when they turn out to be dishonest (we each decide independently why they chose to be unregulated, but I’m not aware of any reasons that might be good for customers!)

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Ugh :woman_facepalming:I’m tired of you people making nonsensical connections. He simply asked about offering margin percentage and leverage on a pair simultaneously, and you’re confusing the issue with irrelevant points about regulation. Focus on what’s important—people’s concerns. Don’t lecture on the dangers of unregulated brokers; that’s not what was asked. The question was about leverage and margin percentage, not your opinions on broker regulation. Please just address the specific questions asked and keep your personal views to yourself.

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And I’m tired of people being rude about their fellow-members.

“Truncated” gave a very good, helpful and accurate answer to both parts of Vasil’s question, which was appropriate and beneficial both for Vasil himself and for other people reading the forum.

If you don’t like what someone says, here, put them on your ignore list: that’s what ignore lists are for. But stop whining and criticizing what experts are saying, because that helps nobody and just irritates people.

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honestly he is confusing margin percentage and stop-out level. i am thankful for all your comments just here my idea is more closer to emi.

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thank you but i think what you say is stop out level. the margin percentage is something like leverage i just do not understand how it is work and i am more confused when it comes with leverage at same time

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You haven’t been here for even a month and don’t truly know what has happened. Look at my profile and my messages, and you’ll see that I have never been rude. But sometimes, certain things need to be pointed out and get the right reaction.

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You are tired of people being rude to other members yet you call her a whiner and did not ignore what she said, please practice as you preach, god bless you.

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