Importance Margin and Margin Call

Importance Margin and Margin Call : Congratulations to trading that already spend reading this small article we would expect but hopefully you guys can be good after reading from our blog. On the position of the investor or prospective Forex Traders lose money, chances are you do, firm or broker Forex broker or dealer margin call position. If the latter, which makes the position of the end of the merchants and traders have to bear all the losses.

This loss can be avoided if the dealer still bring a brokerage firm, the funds must be obtained. Therefore, it is likely that the price will be paid to distributors will help.

It is therefore very important to pay attention to margins and margin calls from brokerage firms. Profit margin and margin call:

  1. Margin allows traders the opportunity to achieve a high level of leverage. With the initial margin is only 1% of the actual value of contract opportunities for retailers to offer a 100% profit.
  2. Fields provide traders with the flexibility to fill positions in the cash market (number of trades) is too expensive. To trade in the foreign exchange market, for example, is a 100% equity traders are normally stored in the transaction. If you get a margin facility, only a maximum of 50% of the capital requirement. With only 1% initial margin has online Forex traders the opportunity to trade easier and cheaper to get a place.
  3. For companies or brokers Forex Broker maintenance margin and margin is an important factor in risk management. As soon warned traders to deposit additional capital if the position can afford to lose money. In addition, traders still have a chance to make a profit if the price reverses direction.
  4. Margin Call is a call to awaken the dealer so they realistic in the transaction, and to act immediately to clearing trades positions. Without collateral mechanism, the dealer can not forget that the position of the state in danger. Accordingly, the application for interim relief is to serve as a warning to retailers to decide to act quickly and decisively to take risks, risks that threaten his position.
Hopefully, we understand the importance of margin and margin calls can provide added value to our consult Forex trading account for all the possibilities that could happen.

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