Margin Call

 

If you hit a margin call on one trade after the trade is closed does the broker return whats left of the money to your account or do you lose all the money you put up as the margin thus all the money in your account?

Thanks in advance,

Phil

 

you get wiped out. Favorite game of dishonest brokers, big banks, and liquidity providers is to pull bid/asks for a few seconds to minutes. Causes cascading stop blowouts, and if deep enough (usually in conjuction with a big news item) eventual account liquidations. Rookies get killed when they are on the wrong side in a fast moving market and double down way too soon. Rule - never have more than 5% of your funds in any and all trades.

Reason: