Thank youWell explained
Suppose you have an open position, and the market is going against you i.e. you are losing. Now your margin is falling, so the broker has set a predefined limit at which you will receive a notification within your trading platform.What is a margin call, how do you avoid it, and what is going to happen when you get one, please?
it is call given by the broker when the funds reach a particular threshold in order that the client does not incur more losses it is the used margin alert notification at 30% when I loose. If my equity falls below 50% the broker will start selling my open positions in order that I don’t incur more losses. When your used margin reaches 70% it is generally given to the client in order to minimise the losses to the client to protect his margins and stops the client position to go into negativeWhat is a margin call, how do you avoid it, and what is going to happen when you get one, please?
it is call given by the broker when the funds reach a particular threshold in order that the client does not incur more losses it is the used margin alert notification at 30% when I loose. If my equity falls below 50% the broker will start selling my open positions in order that I don’t incur more losses. When your used margin reaches 70% it is generally given to the client in order to minimise the losses to the client to protect his margins and stops the client position to go into negativeI had a few of these in the early days! A few blow accounts too!
If you learn about risk management and the capital preservation, it can be easily avoided. It's usually cause by greed and over leveraging.
Yes, overleveraging is the main cause of margin calls.. In my early days I was so tempted with brokers offering 100X plus leverage and ended up loosing my capital. Gladly, things are better now.I had a few of these in the early days! A few blow accounts too!
If you learn about risk management and the capital preservation, it can be easily avoided. It's usually cause by greed and over leveraging.
I still use a good amount of leverage, but smaller lot sizes and a tight risk management strategyYes, overleveraging is the main cause of margin calls.. In my early days I was so tempted with brokers offering 100X plus leverage and ended up loosing my capital. Gladly, things are better now.