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Thread: Margin Call and stop-out

  1. #1
    Super Moderator RoboForex Trader's Avatar
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    Margin Call and stop-out

    Lots of beginners are often confused about the concepts and terms. Let’s go to the page http://www.roboforex.com/beginner/glossary/

    Margin Call
    It’s the broker or dealer requirement for to deposit additional cash or other assets to guarantee discharge of obligations for a loss-making position of the client.

    Stop out
    It’s an order for the forced closure of positions without the customer's consent or any prior notice in case of a shortage of funds to maintain an open position.

    In case of funds shortage position is going to be eliminated and Margin Call comes. And during an account is coming near Stop Out, the Margin Call is declared, - it’s time for trader to make a decision whether to deposit an account or just waiting for Stop Out. The difference is that in case of the Margin Call transaction is still visible on the account but colored with red on the terminal display. This is a kind of warning level, beyond which the Stop Out can follow.

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  2. #11
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    Quote Originally Posted by mohamed reda View Post
    we can say that using the highest leverage will be so bad if you are trading with a high capital so i think the best leverage is 1:100 and i had many margin call but in fact it may be a disaster for any trader but if you are a beginner trader it may be a great opportunity for you to learn from your mistakes .
    yes you are righwant to use high leverage because majority of traders gets margin call due to using high leverage and opening too many trades at the same time..t trading with high leverage as a new trader is very dangerous because most new trader does not know how much risk involved when you

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  3. #12
    Trader martyn's Avatar
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    margin call is a condition in which the margins that we have already been in critical condition, there is usually a red alert in the trading platform when we experience a margin call. while the stop out is a condition where the power margin that we have had no more power to resist the order, and calculation is usually already determined by the broker, so if we had a stop out the orders that are still open and continuous loss will be closed automatically by system on broker

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  4. #13
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    Quote Originally Posted by mark48 View Post
    yes you are righwant to use high leverage because majority of traders gets margin call due to using high leverage and opening too many trades at the same time..t trading with high leverage as a new trader is very dangerous because most new trader does not know how much risk involved when you
    I prefer to use leverage big, but in times of trading on the news just because I put the capital of the small and the size of Risk is very large and this method trade them long ago and achieved substantial profits either margin Cole is when we lose money all happens with me a lot when reflection News

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  5. #14
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    how to count margin call and stop out from balance and free margin?margin call and stop out only from deposit or from bonus too?excemple we deposit $1000 and get bonus 25% so my balance become $1250...how much free margin we can get stop out and margincall?my mean we can get stop out and margin call if my free margin -1000 ( from my balance) or -1250 ( from my deposite and bonus),
    Thank your help

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  6. #15
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    The margin call and stop out is different things. Margin call it means we are losing whole deposit in our account and we can't using that account without make a new deposit. Stop out it different because our order will be closed because we lacking the margin. If we use low leverage usually we still can trade by using existing balance after stop out.

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  7. #16
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    Quote Originally Posted by restu79 View Post
    as a beginner I often have margine call looks like it would be foolish for me because I terlu let flouting and always look forward tranend reversed when the direction of the trend continues and eventually the MC did we have to find the right moment to take a buy position or cells do not understand my random origin still remains to be banya beginners learn
    I too was initially margin Cole is more than anything meet him at Forex and hit him more than 20 times the accounts of small forex but having learned well the ways in which to realize them good profits you compensate every loss the previous some profits few and I think that the best stop out companies only when junior is at 50%

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  8. #17
    Registered user mohabbat's Avatar
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    stop out and margin call both is same .I think there is no deference . but it is very bad situation for a trader . so we should to follow any good money management rules for avoiding this call .

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  9. #18
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    Well the two of them are very different after all. because your account will get immediately cut off if the stop out was hit and you will automatically get your money reduced by the stop out. If you only get a margin call, then that means you will get a warning that you're about to hit the stop out or at least you are warned that you might just suddenly went bankrupt.

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  10. #19
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    actual margin call as a warning only that the margin is low and may need to in iject equity funds and we may be able to survive, and stop out the difference in this case when we entered the market and then we had under the equity margin required and our position automatically already out of the market and it's called stop out

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  11. #20
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    I used to think that the margin call and the stop out mean one and the same thing. Due to the informative threads started by roboforex I am learning a lot about Forex. The stop out is the worst that can be expected to happen in Forex trading. We should avoid this and protect our capital as much as possible.

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