Order "aware minimum margin"

[Falken]

Hi, could anyone please explain this for me ? Haven't really got me head around it yet.
For an example, my broker says there's a Order "aware minimum margin" to trade the EUR/JPY, which is 50%.

What does these 50% mean ?

Appreciate

 

[brut]

if you have a stop order on an open position, then your margin is reduced by 50%, as it is "aware" of the fact you have a stop in there.

if the total loss in the case of the stop being hit is greater than 50% of your initial margin, then this value will be your total margin

 

[Rhody Trader]

Actually, I doubt it has anything to do with a stop order. Most brokers have "maintenance margin" requirements set at 50% of the initial margin requirement.

 

[brut]

maintenance margin isn't order aware margin though, as seems to referred to in post above ?