Margin Call (Margin Call).
So trading on the stock exchange is almost always the case with the use of leverage, there is a possibility of losing not only the means of the trader, but also provided a loan broker. That would not prevent the dealing centers use their own stop loss orders, which insures them against losses. One of these orders is a Margin Call.
Margin Call (Margin Call) – a special loss ratio of the transaction, at which a broker can make a decision on the early closure of all open orders under compulsion.
This order tells the broker that the financial result of losing trade, or all open positions in the trader’s trading terminal is approaching a critical point. After that, the representative of the brokerage company makes a decision on early termination of trading or continues to control it depending on the situation in the forex market.
Margin Call plays the role of a warning bell about the dangers, but even if there was no decision on closing the order, credit the money will still remain protected stop out level which is binding.
Standard size margin call is usually in the aisles of 15 to 40 percent, should not be thought that the smallest dimension of this level is more preferable when the margin trading. In practice, it can turn the other way around, and early closure of unprofitable transactions on the part of the forex dealing centers sometimes allows you to save at least part of the trader’s funds.
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