CFD Question - Margin Level

[JD1]

Hi All,

Doing research/further reading on Forex, and thus CFD

I understand that most times a Margin Level = (Equity / Used Margin) x 100%

So playing on CFD Practice, trying to do bad trades to get to this level (weird how its more difficult when you’re trying to do it purposely)

How come the figure T212 gives when your Margin Level is reached, is 50%? and not 100%? From what I can tell it’s the same calculation? when Equity is equal to Used Margin?

I can’t see where the 50 comes from? Please point out the obvious part I’m missing.

Any help is appreciated

PS, this site is fantastic if anyone just wants to learn more about Forex.

Learn Forex Trading With BabyPips.com

[JD1]

Any ideas anyone? TIA

[Hectares]

CFD margin call

@AlexAB Think of this way - you get stopped out when account funds = margin / 2 (invested funds / 2). Balance = £10,000, you invest £10,000 → if you lose £5,000 you get stopped out. Balance = £10,000, you invest £1,000 → lose £9,500 → stop out. There’s a ton of information & calculation examples here: