Margin
All accounts are set to a default margin requirement of 0.5% on a Mini Account and 1% on a Standard Account. At the 1% margin level, the margin requirement is $1000 per 100,000 traded. Traders do have the option of trading using more or less leverage, though a higher degree of leverage can lead to larger losses as well as gains.
The Trading Station will calculate in real time both the margin requirement and the remaining usable margin in your account. You can see them stated in the Accounts window of the Trading Station under the columns UsdMr (used margin), and UsblMr (usable margin). If the UsblMr column reaches zero, a Margin Call will be triggered on the account, and all open positions may be liquidated.
Example:
Account 1234 has a balance of $25,000 and is on 1% margin requiring $1000 for each 100,000 in open positions. Account 1234 buys 300,000 USD/JPY and sells 500,000 EUR/USD. As the account has 800,000 in open positions this trader is required to have at least $8,000 in equity to margin these positions. As this trader has $25,000 in his account the most this trader can loose before triggering a margin call is about $17,000.
