Sorry to bother with newbie questions.
Let’s think about trading CFD on Gold with a retail account. Leverave will be 1:30.
The account total funds is € 100 .
If i open a position of 0.1 Gold, quivalent to € 7.87 , without a STOP LOSS…
The questions are :
- How much does the gold needs to go down so i have a margin call ?
- How much does the gold needs to go down so the position is automatically closed ?
- What happens if i ignore the margin call ?
According to the numbers i see in my practice account, it seems the world would have to collapse for a position like this to cause major damage to the account. Am I missing something ?
Thank you very much.