How can we save our account from margin call? - page 2
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I think that in order to save our accounts from margin call, first of all, one has to risk a small percentage of his margin in a single trade. I will think one should never risk more than 5% on a single trade. Then for all open positions the total number of risked capital should not be more than 50%. We can achieve this by calculating properly before placing our stop loss. I am still new and do not think I can afford to ever trade without a stop loss. Such that even if all my open positions end in loss, I will still have 50% of my capital intact.
Having 50% of your capital risked in open trades is a sure fire way of loosing your account in a very short time. Total capital involved in open trades should not be more than 1 to 3%, this is why it is very hard to make large profits on small accounts because traders tend to risk too much and waste the account. Large gains on a small account equals large risks and ultimately even larger looses.
This is why we should always trade with less risk. You can't recover what is lost, no broker would give you back your money. In every trade you must analyze properly.
I think that in order to save our accounts from margin call, first of all, one has to risk a small percentage of his margin in a single trade. I will think one should never risk more than 5% on a single trade. Then for all open positions the total number of risked capital should not be more than 50%. We can achieve this by calculating properly before placing our stop loss. I am still new and do not think I can afford to ever trade without a stop loss. Such that even if all my open positions end in loss, I will still have 50% of my capital intact.
If you have 50% in all trades, your account will not last a single day in a bit more volatile market. The rule of thumb is about 1% total
margin call we can not lose, but we can minimize the MC to have a good risk management. With good risk management then MC can be minimized. we can use SL when trading
"losing a margin call"?
That I would like to see
We will not get margin call if we want to minimize the risk in forex trading. We must discipline so we will not get MC when trading. As a trader, we must do it. Trader will not get maximal result if do not improve skills too. If we are new in forex, try to understand about risk.
The only way to avoid margin call is stop loss
The only way to avoid margin call is stop loss
That is not enough - it is the combination of all the lot sizes and stop losses in combination with the account balance that can prevent a margin call. 1000 stop loss on an 100 lots order would be like not stop loss at all on some accounts
The only way to avoid margin call is stop loss
Yes, using stop loss is the way to minimize the risk, avoid our account from margin call. But we must understand the market movement to be able to get maximal result. We can try to use small amount,
How would a small account help in margin call?
The smaller the account the sooner you ate going to get margin call or you are going to make cents which will not help you at all. You can not make money from thin air