A Forex Margin call happens when a client’s account equity falls below the required margin.
Leverage financed with credit, which is a description of what a margin account entails. This is very common in Forex. A margined account is a leverageable account in which Forex currencies can be purchased for a combination of cash or collateral. Various brokers accept different limits.
Investing on margin isn’t the same as gambling. There are some similarities between margin trading and the casino. Margin is a high-risk strategy that can yield a huge profit if handled correctly. The dark side of margin is that you can lose your shirt and many other assets you own. Investing on margin without understanding what you’re doing is very risky.
As with any other investment research is the key to not losing your shirt! If, for instance, a client has 10 lots of open positions a margin call will occur if account equity drops below $5,000. At this point, some or all of the client’s open positions will be closed immediately at current prices.
Traders are also able to monitor both usable margin and used margin from the “Account Information” window of his/her online trading platform. Positions […]

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