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CFDs, Margin and Leverage

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Hi there,

Please assist me with understanding and confirming a few concepts and terms with regards to trading CFDs:

1. Margin requirement and Leverage - Am I correct in saying for example that if leverage is 1:20, and the underlying stock is for example worth $2 000, then I would have a margin requirement of $100 to complete the transaction?

2. Consequently, what price movement in the underlying stock would lead to a margin call?

Please advise.

Thanks in advance.

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