Leverage/Funds/Margin/Availability
When I open my a/c I see something like the following FUNDS £4,549.69. Margin £3,3329.45. Availability £608.32.
My question is what is the LEVERAGE (is it 30 x total funds) and how is the above worked out. I am wanting to test a strategy with no stops so its vital to know how to prepare for a possible spike. In the forum its suggested that one only uses two thirds of the funds. Things appear so complicated and yet surely there is a simple mathematical solution to prepare for a spike.
@Mtrader9, you will receive a margin call when the loss on a trade starts eating into your margin requirement for the trade and you will be advised to either add funds or close out the losing trade.
ESMA has ruled that there is to be an automatic close of the position by the broker if 50% of the margin requirement is eaten into by losses on a trade. See this example below.