Hi FrankTheTank,

Wow, you don't ask the easy questions, do you?

Historically the probabilities of getting a margin call at any given leverage will depend on margin AND the pairs traded. I wish I had enough historical data to give you a fixed number but I don't nor have I ever seen such a study. Nevertheless, let me see if I can at least clear up the concept.

Given any fixed set of pairs, and a fixed margin of, say, 10% the risk of a margin call at 400:1 will be double the risk at 200:1 as it will only take half the move at 400:1 to eat up free capital. At any fixed leverage, say 200:1, and a fixed set of pairs the chance of a margin call will increase dramatically as margin increases. This is because your free capital will decline as required margin increases. Given a fixed margin and fixed leverage, the chance of having a margin call increase as the volitility of each curerncy increases or the correlation between pairs decreases. That should be more or less expected.

The problem is not so much one of past data not being a good predictor of future results (it isn't) but that the nature of the markets is fairly random. The odds of the markets moving suddenly against you tomorrow are totally unknown. The best you can do is develop a strategy to preserve capital during adverse moves and take advantage of opportunities to buy cheap or sell dear when ever they are presented to you. This is what the FreedomRocks software aspires to do.

As to the calculator, it has already been built into the FreedomRocks software. Currency pairs, interest, leverage and margin can all be played off against each other in a "what if" scenario. All the software is available to clients, reps or even just the curious that have opted for the 15-day free trial. No credit card is needed to sign-up for the trial so come on by and take a look.

I need to state for the record that I am not an employee or agent of FreedomRocks and my opinions and trading results are strictly my own. I am a very happy client and also belong to the 'Referral Rewards' program and do have my own website (see my sig line).

Again, I hope that is helpful.