How to Get Rid of Margin Calls
Judging from the process, margin calls occur because the amount of loss from the OP continues to grow so that if we close, our funds will run out. Therefore the broker closes it because if the loss is left it will continue to grow and no one will bear the loss.
The most terrible risk in trading is MARGIN CALL which is when available margin becomes zero. The system from the Metatrader platform or the other will automatically close all open transactions. And you will automatically experience a substantial loss that can even end up bankrupt.
Successful forex traders must have felt the Margin Call.
Almost all forex traders have met with Mr. This MC. We know how it feels, really desperate when everything is gone. Are there successful traders who have never felt it all? The answer: None.
They have all felt MCs, and they can succeed now. That means, we are right on the same path as them. Just keep on going, as long as we keep on walking (or crawling) one day must be there. It doesn’t matter how much we lose because of meeting Mr. This MC, but how big is the dream we have in the future.
The Margin Call looks after you get a trading account down into a large negative balance. after the margin drops to zero, all trades that are still running will automatically be closed. You automatically lose money.
Overcoming Margin Calls with Stop Loss.
The first tip to overcome it is to use Stop Loss. You need to know that traders who do not use Stop Loss (SL) a large number are forex traders who are not sure of their decisions. Because a forex trader who is sure of what he chooses is well aware of the level at which his choice is wrong so that it will limit the risk of that error.
Another way to avoid Margin Calls.
This time we will learn how to escape from the Margin Call. This discussion is important, very important and more importantly you practice it. You will never meet Mr. MC if you already understand how to avoid it. To escape from these risks we can use practical methods as follows:
- – Trading only using max 5% of the money available.
- – Choose a currency pair that moves up and down quickly.
- – Put a 2-way position at once if we feel we are taking a wrong position.
- – Avoid too little equity deposits.
- – Concentrate on the Market
- – Use Risk Management
- – Do not be greedy!
- – Use the opportunity to always learn
So if it is concluded, the occurrence of margin calls is due to habits that do not want to limit losses. This means that the problem is in the self. So the solution to this is your desire to change these habits by always using stop loss or cut loss.
Beginners often find it easy to trade forex so they don’t want to take the time to study further. By continuing to learn, you will learn more about the intricacies of transactions in forex. If you now read and learn how to escape from a margin call, you will be more careful. Those who do not learn, have a greater chance to meet Margin Calls than those who often learn to avoid it.