Measure the position
A hypothetical account with $2,000 equity and $20,000 of one-directional notional exposure has a 10:1 exposure-to-equity ratio. For this simple linear position, a 1% adverse move is approximately a $200 loss, equal to 10% of starting equity, before costs. Options and offsetting positions need a more careful risk model.
Margin is not a loss budget
Retail OTC forex uses margin and can produce losses beyond the initial deposit. The exact requirements, close-out process and any negative-balance protection depend on the product, provider and jurisdiction. Never infer those protections from a leverage ratio.
Two questions before entry
How much market exposure is being taken, and how much could be lost under adverse execution? They are different questions. A planned stop helps describe an intended exit, but gaps and fills can make actual loss larger than the plan.
Sources & method
Sources support the referenced concepts. Numerical examples are hypothetical unless stated otherwise. A link does not imply endorsement.