#### lucacrebbe

Let's suppose I open a position with leaverage on a stock traded at 5\$

Leavearge 1: 100

I will put 1'000 \$ in a stock at the price of 5 \$ , assuming it could go up

As I know with a position 1000 \$ in a leaverage of 1: 100 if the stocks drops of a - 1% I will receive a margin call

But will this minus 1% be calculated from the initial price with which I opened the position, or can will it be calculated from the profits I have made too?

Example:

I open a buy position with 1'000 \$ on a stock currently traded at the price 5 \$

Let's suppose This stocks goes up to 6 \$ and from then (6 \$ price) it will drop down of - 1%... will then I receive a margin call?

Even if the 1% drop was made from the profits?

Hope you understood what I mean

Last edited:

#### freezfx

You are no where near the meaning or usage of leverage. Try and learn more from google to find practical examples. compare with the example you have given.

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