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Re: strongtower post# 18357

Wednesday, 01/09/2008 6:27:32 PM

Wednesday, January 09, 2008 6:27:32 PM

Post# of 42555
If the simulation game is like the real thing they do not show a number like stocks to indicate margin. To take a position for one standard lot and benefit from movement of $100,000 you would only use $1000 of the $100K in the account.

You would then be using just 1% of the amount of your position. This gives you 100 to 1 leverage. So you could actually control $10 million with your $100K. At that level, every pip would change your balance by $1000

In the real world the dealer would have a hold of around 2% of your account and liquidate your position if it fell below that level. You would start getting margin calls long before that but they will not take any action until you fall below their minimum equity level

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