I began trading with a paper account on OANDA back in November. I started to keep a trade journal. I went through the BabyPips lessons on margin trading, and have a few questions.
Am I correct in saying that the only money actually in play while a trade is active is the margin actually being used, rather than the position size? For example, let’s say I have $1000 in my account. if I go long on GBP/USD for $500, the margin I’m using is $25 according to OANDA’s rate table for that particular pair. So the only portion of the $1000 that’s on the table is the $25, right? If this is the case, then should I be tracking my gains (or losses) against the margin I’m using rather than the size of my position?