Forex trading and Margins?
A web user asks, I just read in an ebook that when you use a margin to borrow a position on an FX position that you cant lose more then your initial margin. this doesn’t make sence to me.
As a theory, if I invest $1000 margin to a $100,000 position. and lets say it goes down to half, $50,000. wouldn’t i lose my margin and owe 49,000?
What i read says that i can only lose the margin. Tell me if its right.
Can you help them out? Post your advice!
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