Initial Margin & Maintenance margin
I have already explained what margin level in forex is. It is the relation between a trader’s funds and the margin (expressed as a percentage). Margin level is associated with such important concepts as Margin Call and Stop Out. Margin Call occurs when the level of your free funds becomes negative or equal to zero. In this case, you can’t open a new position anymore as all the money on your account is a collateral for the open position. After there has been a Margin Call, there could be a Stop Out. In forex trading, a Stop Out Level is when your Margin Level falls to a specific percentage (%) level in which your open positions are closed automatically (“liquidated”) by your broker starting from the most losing one to prevent the client from going into the red.
Traders, who apply aggressive strategies, are quite familiar with these situations as they often occur in their trading. Of course, there is nothing pleasant in it, and such situations often result in the loss of the deposit. Traders, employing conservative strategies, may never come across such situations.
I have already explained what margin level in forex is. It is the relation between a trader’s funds and the margin (expressed as a percentage). Margin level is associated with such important concepts as Margin Call and Stop Out. Margin Call occurs when the level of your free funds becomes negative or equal to zero. In this case, you can’t open a new position anymore as all the money on your account is a collateral for the open position. After there has been a Margin Call, there could be a Stop Out. In forex trading, a Stop Out Level is when your Margin Level falls to a specific percentage (%) level in which your open positions are closed automatically (“liquidated”) by your broker starting from the most losing one to prevent the client from going into the red.
Traders, who apply aggressive strategies, are quite familiar with these situations as they often occur in their trading. Of course, there is nothing pleasant in it, and such situations often result in the loss of the deposit. Traders, employing conservative strategies, may never come across such situations.
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Расширенный режим Обычный режим