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Thread: Margin Call

  1. #1
    nicky2k
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    Question FX Dictionary: MARGIN CALL

    I have noticed that nobody brougt up the subject of "margin call", or maybe they have, I dont know, cos I noticed that ppl use different terminlogy for same things.

    For example some call it "rollover interest" others call it "swap"...

    So as I am new to this, I only know one word for it "margin call", and i didn't see anyone discussing it, so I thought I might pop the question.

    Maybe admin can shed some light on this topic, as in when and in what cases margin call occures?

    Thanks in advance!
    Last edited by nicky2k; 06-14-2007 at 12:23 PM.

  2. #2
    Denis Peganov, FXOpen Development Director cool user FXOpen Manager's Avatar
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    Quote Originally Posted by nicky2k View Post
    I have noticed that nobody brougt up the subject of "margin call", or maybe they have, I dont know, cos I noticed that ppl use different terminlogy for same things.

    For example some call it "rollover interest" others call it "swap"...

    So as I am new to this, I only know one word for it "margin call", and i didn't see anyone discussing it, so I thought I might pop the question.

    Maybe admin can shed some light on this topic, as in when and in what cases margin call occures?

    Thanks in advance!
    We have no margin call. It means that your free margin can be negative and you can use full equity.
    If your free margin level will be less than 10% in this case your positions will begin to close from the most biggest one.
    Example: Your account is 1000$ and leverage is 1:500 and you have 1 lot EUR/USD sell . 1 lot required 200$ of your margin with the leverage 1:500 , so 10% from 200$ is 20$ it means, that position will be closed incase your equity will be less than 20$.

  3. #3
    nicky2k
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    Quote Originally Posted by FX Egypt Manager View Post
    We have no margin call. It means that your free margin can be negative and you can use full equity.
    If your free margin level will be less than 10% in this case your positions will begin to close from the most biggest one.
    Example: Your account is 1000$ and leverage is 1:500 and you have 1 lot EUR/USD sell . 1 lot required 200$ of your margin with the leverage 1:500 , so 10% from 200$ is 20$ it means, that position will be closed incase your equity will be less than 20$.
    so, in your example, as long as I have 20$ in the account, the position will not close, but if it is less then 10% then you will close positions starting with the biggest one, right?

    or if I am not correct, please explain

  4. #4
    Denis Peganov, FXOpen Development Director cool user FXOpen Manager's Avatar
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    Quote Originally Posted by nicky2k View Post
    so, in your example, as long as I have 20$ in the account, the position will not close, but if it is less then 10% then you will close positions starting with the biggest one, right?

    or if I am not correct, please explain
    You are right. Keep attention on margin level and do not allow to be less than 10%.

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    In Profit moneydeep's Avatar
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    THanks nicky2k that was a question I was hoping to ask admin for sometime now. Its nice to have my doubts cleared before heading into real forex trading.

  6. #6
    nicky2k
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    Quote Originally Posted by FX Egypt Manager View Post
    You are right. Keep attention on margin level and do not allow to be less than 10%.
    well, as far as i understood, if margin goes less then 10% then the lot that has most in minus will close, right? Or is it the biggest lot will close? Please clarify...

  7. #7
    Denis Peganov, FXOpen Development Director cool user FXOpen Manager's Avatar
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    Quote Originally Posted by nicky2k View Post
    well, as far as i understood, if margin goes less then 10% then the lot that has most in minus will close, right? Or is it the biggest lot will close? Please clarify...
    Most losest trade will be closed.

  8. #8
    nicky2k
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    Thumbs up

    Quote Originally Posted by FX Egypt Manager View Post
    Most losest trade will be closed.
    Great explanation, I think that this topic is clear... and maybe we can close this thread.

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    wow so that would mean even the initial $25 could handle another 22pips for a total of about 45 pips max in the opposite direction. I think that would be enough to make some money off of.

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    In Profit fxlamer's Avatar
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    Quote Originally Posted by FXManiac View Post
    wow so that would mean even the initial $25 could handle another 22pips for a total of about 45 pips max in the opposite direction. I think that would be enough to make some money off of.
    Well, I am not so sure... some swings are 150-200 pips wide... and defenately your position will be closed if you are that much loosing.

    As I have maybe said in some other threads - the only way to make money off that bonus is to scalp. scalp untill you have enough, that could take a few months, or maybe a few weeks, depends on your luck i guess.

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    With this $25 bonus the swings are the problem

    One can loose money in no time.

    what if the first trade goes bad?

  12. #12
    Denis Peganov, FXOpen Development Director cool user FXOpen Manager's Avatar
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    Quote Originally Posted by mahanidhi View Post
    With this $25 bonus the swings are the problem

    One can loose money in no time.

    what if the first trade goes bad?
    than yyou have about 20-25 pips. Be carefull and try to make good trade.

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    Yes that is true.

    I hope I can become one of those legendry guys withdrawing only from the original bonus

  14. #14
    In Profit fxlamer's Avatar
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    Quote Originally Posted by FX Open Manager View Post
    than yyou have about 20-25 pips. Be carefull and try to make good trade.
    yes, I agree totally with you, the best deal to go about it is to deposit some cash ontop of the bonus, so the bonus will be another extra 25$.

  15. #15
    Intraday Master etrader's Avatar
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    Quote Originally Posted by fxlamer View Post
    yes, I agree totally with you, the best deal to go about it is to deposit some cash ontop of the bonus, so the bonus will be another extra 25$.
    Your strategy to add extra $25 is good

    by FX Open Manager says that with the bonus you have only 20-25 pips for trade, you should be careful not to lose more

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