Originally Posted by
karlie4nia
This is cool and very informative for all levels of traders especially newbies. For me, i usually leave say 100pips back up, meaning that when i have say 100dollars, i know i can trade as much as 1 lot on a leverage of 1.400/500. This leaves me on a margin level of 100pips. This simply means that when the market goes 100 pips against me i get a wipe out or a margin call. I am taken out. This is high risk. But in order to lower the risk, i would rather be on a level of 1000pips. Meaning that i trade 0.1 lot size , the market would have to go 1000pips for me to get a margin call.