Hope everyone is having a great night,.
I am starting to learn about forex but i know the difficulties with margin calls
With margin calls: say if i deposit $1000 and leverage 1:100
(i know it is a stupid thing to do)
So if i go ahead and buy 1 unit ($100,000).
Thus my margin used would be 100,000/100=1000
so already in margin call i assume.
However if i add 4,000 of my own money prior to buying 1 unit- then my total equity would be 1000+4000=5000 thus avoiding a margin call whilst still being able to buy 100,000
is this allowed/this how it works?
(hypotethical question- of course im not going to go ahead do this ...maybe ha)
I am starting to learn about forex but i know the difficulties with margin calls
With margin calls: say if i deposit $1000 and leverage 1:100
(i know it is a stupid thing to do)
So if i go ahead and buy 1 unit ($100,000).
Thus my margin used would be 100,000/100=1000
so already in margin call i assume.
However if i add 4,000 of my own money prior to buying 1 unit- then my total equity would be 1000+4000=5000 thus avoiding a margin call whilst still being able to buy 100,000
is this allowed/this how it works?
(hypotethical question- of course im not going to go ahead do this ...maybe ha)
