Indicator for margin level - page 2

 

When your open trades are making losses to the point that it is wiping half of your account, the broker has the right to close all trades, and they usually do.

This way, they will not find themselves in the position to ask money from you if your account becomes negative because they will stop all trades before that happen.

 

Ah, okay, so that effectively eliminates the risk of a margin call.

 

That is a margin call. It mitigates the risk of owing more than you have in the account.

 
jbfx:
That is a margin call. It mitigates the risk of owing more than you have in the account.

That might be what is called a "margin call" in forex, but its not what I'd call a margin call. A margin call to my understanding is when your broker calls you up and asks for more money as you've lost more than the money in your account. This happens in commodities.

 

what you're referring to is 'overloss' - not with retail online fx trading

ecns' ?

check with individual broker what % of account margin

they use when initiating 'close trades'

 

Looking for a margin explaination thread.

I thought I saw an excellent margin explanation somewhere on this forum.

A friend of mine has asked me to explain it to him.

With numbers like "margin 4000%" it can get a little confusing to newbies.

Although I think I know it .. do you think words would come out of my mouth ?

My understanding is that if you have an account of $10000 at 100:1 Leverage and position is $1000 then if you put one trade on your available margin is $9000 or 900%.

If you to below an arbitrary amount set by your broker ( 50% in the case of IFBX) then your position is closed out.

Would love to find that thread .. it explained it properly !

 
 

re : margin requirement for hedge position with a non-NFA broker

Does anyone know how hedge position margin is calculated with your broker? (assume it's a non-NFA broker which support hedging)

I have a live account at ActivTrades which requires zero margin for hedge position, but this rule is going to change by Aug 23 due to new requirements of their liquidity provider.

It means currently 1 long + 1 short hedge position requires zero margin, after Aug 23, it requires $1000 margin (2 lot requires 2x$500 assume 200:1 leverage)

It seems every broker has different margin rules on hedge position, can anybody share his experience please?

Thanks!

 

Margin Requirements

U.S. will be going to 1:50. Can U.S. investors trade larger leverages overseas or is there a law against this?? I cannot get a clear answer to this question.

If the answer is yes, then what is the safest, most reliable Forex broker overseas??

Dave

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Is there an indicator dhat writes out the current margin level (in % and $) on chart in with adjustable size of the text?

Reason: