Start with exposure
Margin is the amount required to support a position. Your gain or loss depends on the position’s exposure and the market movement, not simply on the margin posted. Higher available leverage makes it easier to take an oversized position.
A hypothetical example
If a position has $10,000 of currency exposure, an adverse 1% move is approximately $100 before fees and currency-conversion effects. Posting a smaller margin does not make that market move smaller. This is a simplified arithmetic illustration, not a trading recommendation.
Check liquidation and protection rules
Read margin-call and close-out rules, stop-order limitations and any negative-balance protection that applies to your specific account. Gaps and volatile markets can change execution prices. Rules differ by jurisdiction and by retail or professional classification.
Sources
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