If I have a 10K account with your 33 times for margin. Does that mean that I can hold 330,000(33K). Then at that price, I’d only be able to hold 33 mini lots? Is that correct? It doesn’t matter what the price is of the underlying currency.
That is not exactly correct, but it is close.
If you have 10K in your hypothetical C2 account, then that means you have $10,000 U.S. dollars in your account.
You are allowed to hold positions valued at $10,000 x 33 … or $330,000 USD.
Each currency position you hold is converted into dollars before margin is calculated. Some pairs are already dollar-denominated. Those that are not are converted into dollar values for the sake of margin calculations. So it’s not purely a quantity-based calculation. It is a dollar-value calculation.
One final note: your available margin increases and decreases based on changes in your account equity. If you hold an open position that has lost $1,000 dollars in value, then you no longer have $10,000 in your account; you have $9,000. Your 33:1 leverage thus only gives you ability to control $297,000 of currency.
