I have been through the school but am not understanding why a broker would make you have 2% margin on a 50:1 leveraged account when they only ask 1% on a 100:1 account. Isnt it true you have a greater risk of getting a margin call on a higher leveraged account? I guess I am not seeing something here.
The margin requirement is a direct mathematical function of the leverage ratio. If your permissible leverage is 50:1 then by definition, to trade $50 you must put up $1, which is 2%. At 100:1 leverage it takes $1 to trade $100, or 1%. That’s it.
I couldn’t see the forest through the trees. I think I have had a long day!