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    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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    Registered user rinaji's Avatar
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    Quote Originally Posted by jull View Post
    Margin call still big problem for every trader for novice or senior, but some time we still jump in to fire of big lot trade problem so emotion just take cover our system so everything look on high risk level, until we loose all but the this strange situations will lead in to margin call.
    Of course, uncontrolled emotions can trigger not disciplined in applying money management, so we use the large lot size, especially when we get a loss in the trade. Emotions often cause retaliation, and want immediate recovery of loss without taking market analysis. Often we get a margin call if we can not control the emotions.

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    If you lose, be patient. If you win, stay humble

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    Quote Originally Posted by taqiniazi View Post
    The Margin Call and the Stop out is the most severe that can occur to a investor. but if you have an large investment you can company without think about your Margin because already have an totally free a lot of margin in your account. but if you are a starter investor it may be an excellent chance of you to understand from your errors .
    We can avoid margin call by choosing to be more disciplined trader. If we take low risk and trade with risk and money management we can avoid margin calls. The margin call and the stop out is the worst that can happen to a trader. Trading Forex is a tough job and its not easy even to keep our capital safe while trading in Forex. All traders should trade with wisdom

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    Registered user Quid's Avatar
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    Quote Originally Posted by SATISHGURU View Post
    We can avoid margin call by choosing to be more disciplined trader. If we take low risk and trade with risk and money management we can avoid margin calls. The margin call and the stop out is the worst that can happen to a trader. Trading Forex is a tough job and its not easy even to keep our capital safe while trading in Forex. All traders should trade with wisdom
    One more thing about forex,we must be discipline,to avoid thinking to catch the few pips loss with high lot trading it will not work for us,we will always lose the chance for earning if we do this when we are there in the market,always focus and beware of our action in the market.

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    Finally successful traders

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    Rookie kagho's Avatar
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    Quote Originally Posted by jull View Post
    Margin call still big problem for every trader for novice or senior, but some time we still jump in to fire of big lot trade problem so emotion just take cover our system so everything look on high risk level, until we loose all but the this strange situations will lead in to margin call.
    yes a Margin call is still biggest problem for every trader for when you get the margin call from your broker it means that you have lost your financial blood supply to your account and there fore you cannot function as a trader anymore but the best part is this in just a comma in your trading and not a full stop

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    both conditions of forex stop-out and margin call are not good for traders because sometime they dont have any thing to invest back in the broker and this result in their trade loss. so for cover this situation its the best way that you make funds using planning and try to use low percentage of your capital in your forex trades...

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  7. #516
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    Margin call works like alarm for trader. When a trader gets margin call then he is in jeopardy and going to face stop out. So the trader needs to be aware and take precaution to get rid of that.That precaution may be hedging, closing order,placing stop loss whatever. If stop out occurs the the trader won't have nothing to do.

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  8. #517
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    Nobody know will exposed by margin call but we just knew that when we use a very big big lot size and our trade in a wrong trend. If we just set a good money management we will not in anger for loosing all money even the profit just too small but this is a good safe way to earn.

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    Margin call is a big alarm for a trader I think its on of the worst problem for a trader that can happen to anybody in this market and I think if we want to ignore or avoid margin call and stop out then we should check with a good trading plan for our trading it will be safe for a trader and we can avoid that situation

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  10. #519
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    Quote Originally Posted by Khimi234 View Post
    Margin call is a big alarm for a trader I think its on of the worst problem for a trader that can happen to anybody in this market and I think if we want to ignore or avoid margin call and stop out then we should check with a good trading plan for our trading it will be safe for a trader and we can avoid that situation
    Yes, it is one of the biggest alarm for the traders of their bad trades being made. Thus, one should always make sure that they should be able to implement some good and appropriate money and risk management in each and every trade such that the traders can be able to avoid from such alarming situations. Hence, there is need for this awareness and realization to be developed by the forex traders for avoiding further losses and losing their entire account.

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    Yeah its a big alarm for everyone nobody want to see this alarm because its a very big problem for many traders and the main problem with our trading system if we will not maintain proper discipline in trading and will not control on our emotion then nobody will save us to loose our money by that Greed is also a big factor in margin call should be avoided

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