Yes. That does help. Thank you.
I guess my next question is what is the probability (using historical data) of a margin call using 400:1 leverage and 10% margin verses the probability of a margin call using 400:1 and 20% margin, etc.?
I assume that the probability is equal using 400:1 no matter what your margin percentage is. However, people with higher margin percentages risk loosing more of their account.
The next question would be: what is the probability of a margin call using 200:1 vs. 400:1 and 10% margin?
These are questions that would help a lot of traders determine the risks of this system and I have not seen the answers posted anywhere. I realize that using past data is not a good way to predict the future, but, at least it can help.
As a side note, I am able to make some very cool calculators using a Crystal program (shown here:
www.funcalcs.com )
If anyone can help me figure out the formulas for calculating interest returns based on currency pairs, margin, and leverage, I could make an interactive calculator for FR that might help a lot of people determine their ideal settings.
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http://www.forexnewstrade.com/index.php?topic=11.5