Fx Margin Call (Total size: 428.6 MB Contains: 1 folder 24 files)

Margin Calls in Forex Trading – Main Talking Points:

✅A short introduction to margin and leverage
✅Causes of margin call
✅Margin call procedure
✅How to avoid margin calls

Traders go to great lengths to avoid margin call in forex. Therefore, understanding how margin call arises is essential for successful trading. This article takes an in-depth look into margin call and how to avoid it.

“Never meet a margin call. You are on the wrong side of a market. Why send good money after bad? Keep the money for another day.” - Jesse Livermore

Margin and leverage

In order to understand a forex margin call, it is essential to know about the interrelated concepts of margin and leverage. Margin and leverage are two sides of the same coin. Margin is the minimum amount of money required to place a leveraged trade, while leverage provides traders with greater exposure to markets without having to fund the full amount of the trade.

It’s important to remember trading with leverage involves risk and has the potential to produce large profits as well as large losses. Read our introduction to risk management for tips on how to minimize risk when trading.
What causes a margin call in forex trading?

A margin call is what happens when a trader no longer has any usable/free margin. In other words, the account needs more funding. This tends to happen when trading losses reduce the usable margin below an acceptable level determined by the broker.

Margin call is more likely to occur when traders commit a large portion of equity to used margin, leaving very little room to absorb losses. From the broker’s point of view this is a necessary mechanism to manage and reduce their risk effectively.

Below are the top causes for margin calls, presented in no specific order:

✅Holding on to a losing trade too long which depletes usable margin
✅Over-leveraging your account combined with the first reason
✅An underfunded account which will force you to over trade with too little usable margin
✅Trading without stops when price moves aggressively in the opposite direction.

What happens when a margin call takes place?

When a margin call takes place, a trader is liquidated or closed out of their trades. The purpose is two-fold: the trader no longer has the money in their account to hold the losing positions and the broker is now on the line for their losses, which is equally bad for the broker. It is important to know that leverage trading brings with it, in certain scenarios, the possibility that a trader may owe the broker more than what has been deposited.

Below is a visual representation of a trading account that runs a high chance of receiving a margin call:

Deposit: $10 000

Number of standard (100k lots traded): 4

Margin percentage: 2%

*Used margin: $9 000

Free margin: $1 000

*The used margin is calculated as follows with the EUR/USD at 1.125:

Trade size x price x margin percentage x no. of lots

$100 000 x 1125 x 2% x 4 lots = $9 000

(unlimited download and permanent access to cloud server) (Buyer will be gain permanent access to the cloud storage files,Proof of content,please see the images)

Delivery to your PayPal email address within 24 Hours of payment confirmation.

Completing units:

Fx Margin Call (Total size: 428.6 MB Contains: 1 folder 24 files)

To buy without signing in contact us here:

Market Sales Price: $299,but we sell lot more lower than that to share the opportunity with you!

Our Policies

A. Product Quality

• We ensure that the quality of the course is good, and we update them regularly to help you keep update.
• If there is a problem you can not use, please let us know so we can fix it soon or if there is any notification, we will inform you immediately.

B. Shipping Method

• After receiving your payment, we will send you a link to access and download the course. If our team is not in the office, please wait for us about 8 hours to come back.

C. Refund Policy

We do not accept refund after you got the link and download the course.

We will refund your money in case of:

1. Item is not as described
2. Item doesn’t work the way it should
3. Item support extension can’t used

Serving Professional Traders Since 2008

Once purchased I will email you the files within 20 minutes and not more than 48 hours to your email, if there a delay, please be patience receiving your files