Current location - Trademark Inquiry Complete Network - Futures platform - Foreign exchange explosion.
Foreign exchange explosion.
Suppose your capital is 1 000 USD and your leverage is 400: 1, and you buy Eurodollars with a trading volume of 1.3349/ 1.3352 USD, then the margin occupied at this time.

Similarly, if the euro is against the dollar 100000, it can bear a loss of 96 points.

If the account loses money to the extent that the available margin is insufficient, then there will be short positions. After the short position occurs, each platform may be different. Some platforms will all be forced to close positions, and some platforms will be forced to close positions one by one in the order of opening positions. First, a single deposit will be released. If it is not enough, then gradually close the position in chronological order.

According to the above example, if all positions are closed by force, then in theory, only the margin amount is left in the account funds, that is, $33.38.

I hope it helps you!