I'm having difficulty understanding if I can get easily margin liquidation. Let's say I trade only on 10x margin. So my max allowed loss before I get a margin call is around -10%, because
-10% x 10 = -100%
But is the 10% loss calculated on each trade separately or cumulatively? Let's say I open 6 trades and their closed profits are like this:
-2%
+5%
-5%
+3%
+1%
-5%
Total profit= -3%
So the total profit is -3%, which is more than -10%, so I don't expect to get a margin call. But my total loss is -12%.
So my question is will I get a margin call in this example or not?
My main question:
To avoid getting margin calls, should I be worried about individual trades or their cumulative loss?
Thank you.
Leave a Reply