What is Margin Call?
Margin call is th
e demand for additional funds. Investopedia defined Margin call "A broker's demand on an investor using margin to deposit additional money or securities so that the margin account is brought up to the minimum maintenance margin".
When the traders money falls below the margin requirement which is the usable margin, your broker will close some or all open positions. That is the time that you will receive a margin call. This prevents your account from falling into a negative balance. If the maximum allowable leverage has been exceeded, any open positions are immediately liquidated, regardless of the nature or size of the positions.
Margin call is something that every trader will have to be aware of. If for any reason the broker thinks that your position is in danger, let's say you have a position of $100,000 with a margin of one percent ($1,000) and your losses are approaching your margin ($1,000). He will call you and either ask you to deposit more money, or close your position to limit your risk and his risk.
If you are going to trade forex on a margin account, it is very important that you know the polices of your broker and that you thoroughly understand them in order for you to be comfortable with them and understand your risk.
FOREX TRADING TRAINING
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Margin call is th
e demand for additional funds. Investopedia defined Margin call "A broker's demand on an investor using margin to deposit additional money or securities so that the margin account is brought up to the minimum maintenance margin".When the traders money falls below the margin requirement which is the usable margin, your broker will close some or all open positions. That is the time that you will receive a margin call. This prevents your account from falling into a negative balance. If the maximum allowable leverage has been exceeded, any open positions are immediately liquidated, regardless of the nature or size of the positions.
Margin call is something that every trader will have to be aware of. If for any reason the broker thinks that your position is in danger, let's say you have a position of $100,000 with a margin of one percent ($1,000) and your losses are approaching your margin ($1,000). He will call you and either ask you to deposit more money, or close your position to limit your risk and his risk.
If you are going to trade forex on a margin account, it is very important that you know the polices of your broker and that you thoroughly understand them in order for you to be comfortable with them and understand your risk.
FOREX TRADING TRAINING
REUTERS.COM
Currencies section:
FOREX - US dollar gains as jobs decline smaller than forecast
FOREX-Dollar see-saws vs euro after US manufacturing data
Currencies section:
FOREX - US dollar gains as jobs decline smaller than forecast
FOREX-Dollar see-saws vs euro after US manufacturing data
DAILY FOREX FUNDAMENTAL REPORTS-ACTIONFOREX.COM
US Dollar depends on FED for direction next week -watch what they say, not what they do
USD gains as US payrolls fall less than expected
Daily Market Commentary - Fundamental Outlook
GFTFOREX.COM
Weekly Market Commentary
NASDAQ NEWSROOM
NASDAQ OMX Reports Exchange Technology Highlights for First Half
NASDAQ OMX to Introduce the NASDAQ OMX Global Agriculture Index
NASDAQ OMX Announces Mid-Month Open Short Interest Positions in NASDAQ OMX Stocks as of Settlement Date July 15, 2008
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