Monday, December 28, 2009

ForexGen | Margin Call


Margin call is something that you will have to be aware of.

If for any reason the broker thinks that your position is in danger e.g.

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.

Margin call is actually a good thing. It safeguards you and your broker.

Some traders become so emotionally involved with their position that they are in cable of making a rational decision.

If a margin call is exercised it will safeguard the trader from further losses

No comments:

Post a Comment