Could you please explain margin call in the below example. I have read about it but I have some confusion because of the percentages and what they are to be applied on.
Let us say I have a $5000 deposited in the trading account and I use a 100:1 leverage. If I place $100,000 long order for EUR/USD @ 1.01000, what would be the price at which I would get a margin call and my order gets closed out automatically, if the Margin call = 120%, Margin Stop = 100%
For Margin call, Is it correct that the position would be closed out when the loss equals to $ 3800 and the remaining deposit amount in the trading account becomes $1200 ?
Please correct me on the above and also please let me what the Margin stop @ 100 % is ?