I hope someone could help me figure out some doubts regarding elementary concepts.
In case you wonder, I already read the Forex School section and didn’t find/understand the answer there.
- I opened a demo account with Global Prime with 4,500 USD
- My demo account was “funded” in USD
- Leverage is set to 100:1
- I went long on the EUR/USD, 1 microlot at 1.14789
- My account informarion says Margin is 10.00
… now my Problem is this:
- The definition of a microlot is 1,000 units of the Base Currency
- The Base Currency on the EUR/USD is the EUR
- EUR/USD=1.14789, in order to buy one microlot, one would need 1,147.89 USD (1,000 x 1.14789), then the required Margin should be 11.47 instead of 10.00
-What’s the mistake, what am I doing wrong?