Indicator of margin call

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Is the some indicator that would display how many points i can tank before i'll get a margin call?

(With the current balance i have).


Could be good to see it as a stop loss line.

Otherwise i'll be happy to know if there is smth similar

 
kokon:

Is the some indicator that would display how many points i can tank before i'll get a margin call?

(With the current balance i have).


Could be good to see it as a stop loss line.

Otherwise i'll be happy to know if there is smth similar

If you're trading that proximate to your margin call level, you're not trading responsibly.

If you insist anyway, there are free margin call indicators out there if you do a browser search.

 
Ryan L Johnson #:

If you're trading that proximate to your margin call level, you're not trading responsibly.

If you insist anyway, there are free margin call indicators out there if you do a browser search.

Though I understand your argument, but a valid money management strategy is actually using your accounts stop out as a hard SL without slippage by law and on regulated retail brokers.


 
Dominik Egert #:
Though I understand your argument, but a valid money management strategy is actually using your accounts stop out as a hard SL without slippage by law and on regulated retail brokers.


I could get hit by a garbage truck too which would be a hard stop-out, but I don't incorporate that into my trading strategy. In a valid strategy, a margin call level should be so remote that it never appears on the chart... just like the garbage truck.

Also, Martingaling is not a valid trading strategy (this is usually where margin call appears in a "strategy").

 
Ryan L Johnson #:

I could get hit by a garbage truck too which would be a hard stop-out, but I don't incorporate that into my trading strategy. In a valid strategy, a margin call level should be so remote that it never appears on the chart... just like the garbage truck.

Also, Martingaling is not a valid trading strategy (this is usually where margin call appears in a "strategy").

Oh, I am not a martingale trader, and the trader using the account stop out as his SL is actually smarter than a trader putting all his money into one account.

You see, if you swing trade with a strategy that you open a position and never look back, and you are putting like 100k into that position, why take the slippage, or have the position pop into your face every time you open your MT.

Beginning traders always start on one account, but once you are in the business, and have a profitable strategy, why bother at all with only one account?

Edit:
Ever seen a price go negative? Crude did. My account stopped out on -5k Broker had to cover and flatten out the account. That's by law and regulated Brokers. It is actually a tool that is given to you for your benefit.
 
Dominik Egert #:
... swing trade with a strategy that you open a position and never look back...

I would never do this, no matter how many accounts I have.

Dominik Egert #:
... once you are in the business, and have a profitable strategy, why bother at all with only one account?

I actually run a business, but I don't promote it here. I code strategies dedicated to specific instruments in specific markets. As far as I'm concerned, "universal" strategies are a hoax.

Dominik Egert #:
My account stopped out on -5k Broker had to cover and flatten out the account.

I'm sorry that happened to you. Why anyone would want to diversify this across multiple accounts is beyond me.

 
Margin call is a floating stop loss
 
Ryan L Johnson #:


As far as I'm concerned, "universal" strategies are a hoax.

Why anyone would want to diversify this across multiple accounts is beyond me.

One of the reasons is the amount covered by insurance. In Germany its 500k per account.

There are lots of reasons to spread your cash.

Opened a buy position at (as I thought) rock bottom of price. But luckily it was a separate account. And the loss I personally took was much less. Still, the position smashed through zero balance. If I had more in that account, I would have lost more than that. The price turned negative and trading was stopped, but close out price of positions was even lower and after trading stopped.

 
Dominik Egert #:
One of the reasons is the amount covered by insurance. In Germany its 500k per account.

😲 In the U.S., the only thing covered is stock trading capital. Derivatives trading capital isn't insured at all. I guess that's why a U.S. forex broker-dealer must have at least 20 million USD in a lockbox account.

Dominik Egert #:
There are lots of reasons to spread your cash.

Yeah, I get that but I'm not positional trader. I run vastly different strategies on vastly different instruments depending on their respective volatility, commissions, spread, margin, tick value, etc.

 
Ryan L Johnson #:

😲 In the U.S., the only thing covered is stock trading capital. Derivatives trading capital isn't insured at all. I guess that's why a U.S. forex broker-dealer must have at least 20 million USD in a lockbox account.

Yeah, I get that but I'm not positional trader. I run vastly different strategies on vastly different instruments depending on their respective volatility, commissions, spread, margin, tick value, etc.

That's all fine, still, using the account stop out is a legitimate money management strategy.
 
Dominik Egert #:
That's all fine, still, using the account stop out is a legitimate money management strategy.

To each his own, I guess.

I refer to margin call as a blow-up.💥

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