Although the example given is much simpler than what's happening in real market situation.
But it cleary illustrates that trading in can easily magnify trade's ROI in a dramatic way. Although trading on margin sounds extremely easy to gain profits, but it is important that traders understand well the risks they are undertaking.
Traders should be very aware of the margin call and should always avoid them at all cost. Note that in the event that money in your account falls below predetermined threshold (Margin Call), the positions in the account could be partially or totally liquidated, even it's in a highly volatile, fast moving market. Also, traders should always monitor own margin balance on a regular basis and utilize stop-loss orders on every open position to limit downside risk.
In most cases, you might need a computer aided trading tools to determine the entry point as well as stop loss order.
Trading tools DashBoard FX is currently pushing out tons of useful features in their software and they provide free tipping service from time to time - perhaps you should take a look on them
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