简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:Today, the term MC or Margin Call broker level is often associated with the fund depletion of someone who has just experienced a huge loss in trading. This term is quite popular among the trader community who are active in social media and the real world.
Contrary to the Margin Call broker, many traders dont even know the term Stop Out. This rarely used term is no less important than Margin Calls. If you have experienced a large loss in your trading, by a position suddenly lost and followed by lost funds, it is a Stop Out.
Most traders think that if the funds run out and the broker close the position, then what they experience is a Margin Call.
Margin Call broker is a warning system from the broker if the equity you have is not sufficient to the margin needed to hold the position. Whereas Stop Out is a forced closing of a trading position because equity funds have decreased and do not meet the margin needed to hold the position. Thus, the forced closure that you experience is not called the Margin Call broker, but Stop Out.
Margin Call broker and Stop Out arises from the many interests of the public to participate directly in financial market trading. To carry out this trade, you need large capital because the minimum transaction base reaches thousands and even hundreds of thousands of US Dollars in each transaction. Then, the brokers deal with margin trading.
Margin trading is a solution from a broker. Thus, an investor with small capital can still participate and take advantage of the financial market. The margin itself is a security deposit that we provide so that you can maintain your position.
So how do you know the values of the broker‘s Margin Call and Stop Out? These values have been set by each broker you use in forex trading. There are various Margin Call broker values. You can see this value on the account specifications page on the broker’s website.
Leverage is a double-edged sword for financial market participants. It can help us to get maximum profits only with capital that tends to be small. On the other hand, leverage can also kill us because it causes things like overtrading, overlapping, etc. In using high leverage, there are tricks and tips for getting high profits. However, beginners should use small leverage.
Money Management is an important factor in protecting accounts from Margin Call brokers and Stop Outs. Because it can manage lots and the number of funds that are ready to be lost in one position. Besides, additional positions must also be calculated well in terms of Margin and capital endurance. Always remember that overlaps and overtrades have killed many traders accounts because they can invite broker Margin Calls faster.
Most traders are reluctant to use Stop Loss just because they expect the price to turn around and turn the current loss into a profit. The feeling of not wanting to admit mistakes in analyzing this is also often the cause of Margin Call brokers or Stop Outs on trading accounts.
To avoid this, make it a habit in yourself to always calculate the risk that can be obtained in each position. Besides, you should use a Stop Loss to prevent losses that swell and can not be dammed again. According to Investopedia, most investors can benefit from implementing a stop-loss order.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
Saxo Bank launched an attractive promotion for new clients that offers zero commission trading on transactions for the 100 most popular US stocks. This campaign began on September 17, 2024, and runs until December 31, 2024. It aims to attract clients who want to invest without paying trading costs.
MetaQuotes now offers Nasdaq real-time tick data in MetaTrader 5. Subscribe for accurate market analysis, improved trading strategies, and flexible subscription plans.
Federal Reserve Cuts Rates for the First Time in Four Years. On September 18, Bank of America Global Research revealed an upward adjustment in its forecast, expecting the Federal Reserve to implement a total of 75 basis points in rate cuts by year-end.
The Federal Reserve’s decisions to raise or cut interest rates are among the most influential drivers of market activity, particularly in the forex and cryptocurrency markets. Understanding the impact of rate changes is crucial for market participants, as it helps them anticipate potential movements and adjust their strategies accordingly.