what is a margin call?

One of the most unpleasant experience a trader can face is known as a Margin Call the understand the dynamic behind this future one must first appreciate what margin is the forex market which unfortunately is a commonly misunderstood concept. what is margin? Margin is essentially a good faith deposit that's required by the broker in order to open and maintain trading position in the forex market. Furthermore it also ensure that the trader has sufficient funds in the account margin is not a free or is it a transaction cost if you buy on margin you are effectively e boring money E from your broker to trade it's is entirely I'll on deposit is considered margin which is required in order to use leverage. To put it simply when a trader execute at read a portion of their account is put on hold for East to lot of currency traded in addition to this one must also take into account that as the position increases so will the margin requirement margin requirements differ from property broker. ic markets offer very reasonable margin rate as low as 0.2 % on the effects shares as well as flexible leverage options ranging from 1:1 to 1:500. how to calculate margin?: the formula of calculating margin is as follows require margin is equal to trade . Size/account leverage multiple account exchange rate. Using IC markets margin rates and leverages at 1 :500, let's go through a quick example: for educational purposes let's say that our account is denominated in USD traders a have decided that he wants to purchase a standard lot on the Australian Dollar over USD dollar share at a current price of 0.7 681. To calculate this we simply divide 1 lakh units by 500 and multiplied by the current market price which is already known to be 0.768. Following this calculation we are left with 153 dollar. This is your dollar margin requirement for this trade. So what about if our account is denominated in AUD? Well, for this the calculation it would simply be traded size/account leverage which equator to 200 AUD. how to speak margin? understanding trading terminology is of the earth out most improvement communicating with traders fears you broker and when placing trades for example all required want to be family with trading jargon . To illustrate margins terminology letter example using an example. 500 our current account balance is a little under 10k. We have decided to buy 10,000 units the red circle on the AUD USD our trials was filled at a price of 0.7 6765 . our account equity: as you can see is below our balance due to the current position trading in minor drawdown the account equity will continue to reflect ware until the trade is liquidated be that as it may the balance will remain at 9.67 AUD until the trade is settled. margin: margin is how the broker has set aside in order to take this position which is our case is 28 Jodi remember the calculation from above with an account denominated in AUD this similar to the account balance will also not fluctuate during the great and will only stand at 0 once the position has be closed. free margin: currently stand at 9.65 free margin is the amount of account equity that is currently not being used to maintain the open position is internally it is the amount available in your account to open additional position and the amount that our current position can move against US before we receive a Margin Call. Thanks

Re: What is a Margin Call?

Forex Trading me jab bhi hamara account itna low ho jaye k hamara margin negative me chala jata hai, to ye forex trading ki margin call hoti hai. Forex trading ki margin call me hamen ya to apne account me mazeed capital add karna hota hai aur hamen apne account ki kuch trades ko close karna chaheye, margin call hamen apne account me agar kuch trade close na karen to brokers khud hamare account k kuch trades ko close kar deta hai.forex trading ki margin call se bachne k leye hamen apne account ki trading apne account k capital k hisab se karna chaheye aur kabhi bhi over trading nahi karni chaheye, k hamare account ko margin call ho jaye. Dosra hamen lazmi stop loss lagana chaheye. Hamen apni qualities ko Forex Mein improve karna chahie. Mehnat ho to forex trading me kaam se koi mushkil pesh nahi ati hai aur na hi hamen is buisiness me koi bara rukawat ka samna karna parta hai.

Re: What is a Margin Call?

Forex trading ke andar work karte hue Hamen bhashan Kal Se Bachana chahie margin Kalwa Hoti Hai Jab Hamara account was hone wala Hota Hai To fir Hamen Ek BEL bheja Jata Hai Jis Mel ke andar yah message hota hai ki Hamen Apne account mein Masjid deposit ki jarurat hai agar Ham Apne account mein deposit Nahin Karenge to Fir Hamara account wash ho jaega aur Hamari trade automatically close ho jayegi To Agar Ham margin Kal Se Bachana Chahte Hain To Hamen chahie ki Ham money management ka istemal Karen aur apne Hath trade Ke Andar stop-loss Ka istemal Karen