What is a margin call in forex?

[PIPruit]

What is a margin call, how do you avoid it, and what is going to happen when you get one, please?

 

[teopalla]

it happens when a margin account runs low on call especially during the losing trade

 

[Jovana]

Margin call happpens when the prrice already goes below the margin requirement

 

[goodstomecom]

margin call - is when you need to say goodbye to your funds

 

[Surepips]

Leverage is rarely the issue, and id agree its a users position sizing when using higher leverage, as fatfinger's perfect answer explains, it's a depletion of funds. When your happy to admit its not a sustainable approach, look to lower your risk, when it's at a recomeded 1-2% or at least below 5% margin calls are avoided and blown accounts are slowed down. Just because @ 1:500 means 2k margin covers a million dollar position, doesn't mean you should be trading these kind of positions when your account balance cant sustain it. The saying fast gains are matched by faster losses is. Pip calculators are very usefull for managing risk and I'd say imperative to a trader who's playing a game of going all in to speed growth. Not saying its impossible but even with the experience of a time served pro trader its more a game of russian roulette when your trading at such high risk that margin calls come into the equation. Not criticism or anything, just a friendly and self experienced note of caution. Advice isn't our place to give but leverage does require a little more indepth research. It's a very powerfull tool used correctly

 

[momo3HC]

margin call - is when you need to say goodbye to your funds

short and simple.

 

[Shultroll]

All traders write here quite short, however I gotta clarify this moment. Margin call means tha the broker can easily revise the value of the margin after the estimation of the risks, based on market factors for example.
When something similar is happening, the broker issues a margin call for making an investor to bring the margin account bank into the line. The investor has two ways out of this situation, either he pay the call back into the margin account or he disposes some of the collateral sceurities. If the investor refuses to bring the account back into the line, then the brokers has a right to sell investor's collateral securities.

 

[amanatid]

just know it is not good for you and avoid it all costs

 

[erzee]

You can refer to margin as your safety net

 

[Ell8436]

It is the call you don't want to receive as a parent at 2am. It means your are running out of margin and you need to deposit more funds

 

[Dominic Walsh]

A margin call in Forex trading is a request from a broker to a trader to deposit additional funds into their trading account to meet the minimum margin requirements. Margin requirements are set by the broker and represent a percentage of the total value of a trade that the trader must have in their account as collateral.

In Forex trading, margin is used to leverage the trader's capital, allowing them to take larger positions in the market than they would be able to with their own funds alone. However, if the value of the trader's positions falls below the required margin, the broker will issue a margin call, requiring the trader to deposit additional funds to maintain their positions.

If a trader does not deposit the required funds, the broker may be forced to close out the trader's positions to meet the margin requirements, which could result in significant losses for the trader. A margin call is therefore a warning that the trader's account balance is getting low and that they need to deposit more funds or close out their positions to avoid losses.

Best Regards,
Dom