Margin Call and stop-out - Page 355
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Thread: Margin Call and stop-out

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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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    Quote Originally Posted by Toyen View Post
    It is a bad idea for traders to be underrating the money and risk management, the money and risk management is the pillar of the surviving account in the market, it is good for us to use them. The traders with the best trading strategies will still find it hard to be successful when the trader is not trading with the proper use of money and risk management, we all need this and plan it in an effectual manner.
    Yes many times in the heat of trading we are overrated with emotions and in their influence underrate the importance of risk management. So discipline is needed throughout, even to timely learn from many mistakes we all make during trading, like I learned to trade with smaller lots. We need to leave enough margin to support our trades, because we often see that after moving some pips against us, the market turns in our favor.

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    Quote Originally Posted by Abhishekwala View Post
    Yes many times in the heat of trading we are overrated with emotions and in their influence underrate the importance of risk management. So discipline is needed throughout, even to timely learn from many mistakes we all make during trading, like I learned to trade with smaller lots. We need to leave enough margin to support our trades, because we often see that after moving some pips against us, the market turns in our favor.
    if we are doing trade with emotions it means we will lose, we can not trade well if we do not have proper management also, if we are using management we can handle emotions automatically, so do trade properly and do on base or analysis and management both, in emotions we can become greedy we can become fear of loss and many things just our proper management can secure us and can make us better

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    Quote Originally Posted by naeem555 View Post
    if we are doing trade with emotions it means we will lose, we can not trade well if we do not have proper management also, if we are using management we can handle emotions automatically, so do trade properly and do on base or analysis and management both, in emotions we can become greedy we can become fear of loss and many things just our proper management can secure us and can make us better
    but emotions are build in things so i think it is very hard to cover its not easy to overcome emotions people who overcome this issue they start to earn but who can not they just lose money here because of greed we can become greedy its natural but as a trader we have responsibility to overcome the greed to control greed and try some slow trading, so work hard and be patient for slow growth of account

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    Registered user cutiekc's Avatar
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    Lack of good trading strategy is one of the cause why most of the traders always gets to have margin call, on the other hand. The best way a trader can avoid margin call is that they should have a strong way of making use of risk management. Making strong analysis and then never being so much in a hurry to take trades, because being in a hurry to take trades will likely cause mistakes taking risks and setting stoploss.

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    Registered user mexima's Avatar
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    well margin call is some thing when you are out of free margin and your account will gonna blow any time because of heavy loss this is when margin call occur but stop out is think some thing when you can not add more trades because of low free margin that will update by increasing leverage level.

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    Margin call and stoppout is really going to be so much pain to traders, someone like me, I don't wise to have such experience for my self. I want to be the sort of trader who knows my risks, who knows how to make good analysis in the market and most of all knowing the best time when to trade and when not to trade, knowing all those things could help you avoid bad trades and mostly when you also do keep off from the news trading.

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    Registered user ola4real's Avatar
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    Margin call and stop-out are the faults of the forex traders that get them. We should start our forex trading in many ways, but we have to make sure that what we are doing are working correctly for us. Forex traders can use a solid forex strategy and use the management who i strong for it too. This is what i know that if forex traders do well, the trader will not have the margin call or stop-out in their account.

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  9. #3548
    Registered user Toyen's Avatar
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    Quote Originally Posted by Makaveli View Post
    Margin call and stoppout is really going to be so much pain to traders, someone like me, I don't wise to have such experience for my self. I want to be the sort of trader who knows my risks, who knows how to make good analysis in the market and most of all knowing the best time when to trade and when not to trade, knowing all those things could help you avoid bad trades and mostly when you also do keep off from the news trading.
    It is a very wise idea for traders to plan their trade before it is too late. It is lack of plans which is causing traders to lose and have margin call, the traders that have planned their trading rightly will not lose to the extent of having the margin call. We can likewise trade the market with proper money and risk management to avert the disaster of the margin call and stop-out in our trading.

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  10. #3549
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    This is what we should be aware of and try our best to see we cut out on our risk so that we don't easily face this loss in forex. Stop loss gives us a full means of managing our capital and its always the best way we can think of managing our trade. Learning is for our own good and if we can invest quality time to learn, there is no way we can't develop in this business with the right chance. Let's keep on with learning and do try to realize that its the best way to grow and stay successful.

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  11. #3550
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    Quote Originally Posted by Tonycee View Post
    This is what we should be aware of and try our best to see we cut out on our risk so that we don't easily face this loss in forex. Stop loss gives us a full means of managing our capital and its always the best way we can think of managing our trade. Learning is for our own good and if we can invest quality time to learn, there is no way we can't develop in this business with the right chance. Let's keep on with learning and do try to realize that its the best way to grow and stay successful.
    In many cases it is seen that taking high risks is the reason behind big losses and so to cut the losses we have to cut the risks. Any carelessness with the risk factor during trading will make us easy victims to margin calls and severe losses. Following risk or money management is a simple answer to the margin calls or stop outs. We have to be disciplined with these things.

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