Forex Margin Call - Forex Margin Call Calculator - Forex Margin Call Definition
MT4 Margin Call Calculation - Safe Margin Level Forex - Free Margin FX and Used Margin FX
A forex margin call is when a trader's account free margin drops below the required margin level which's set by broker. This means because free margin in trader's account has dropped below required margin level then trader gets a margin call & some of the open trade transactions in trader's are closed by broker until this margin level moves back up to above required margin level.
Some of the open trade transactions may be closed or all of the open trade transactions may be closed-out if this margin call is automatically executed by broker.
What's Margin Requirement Level?
Now if Your Leverage is 100:1
When trading if you have $1,000 dollars and use leverage of 100:1 & buy 1 standard lot for $100,000 dollars your margin on this trade is the $1000 dollars in your account, this is the money that you'll lose is your open trade transaction moves against you & the other $99,000 that is borrowed, the broker will close out the open trade transactions automatically using a Margin Call once your $1,000 dollars has been taken out by market.
But this is if your online broker has set 0 % Forex Margin Requirements before liquidating your trades automatically using this Margin Call.
What's 20% Forex Margin Requirements Level?
For 20% forex margin requirement before liquidating your trades automatically using what's referred to as Margin Call, then your trades will be liquidated once your trading account balance gets to $200 - at $200 you'll get a margin call.
What's 50 percent Margin Requirements Level?
For 50 % requirement of this level before closing out your trades automatically using a margin call, then your trades will be stopped out once your account balance gets to $500 - at $500 you'll get a margin call.
What's 100 Percent Margin Requirements Level?
If the broker sets 100 Percent margin requirement of this level before closing your open trade transactions automatically using a Margin Call - at $1,000 you will get a margin call, then your trades will be closed once your account balance gets to $1,000: Explanation the trade transactions will liquidate as soon as you as a trader execute a 1 standard contract on this account because even if you pay a One pip spreads your account balance will get to $990 & the needed margin requirement percentage is 100 Percent that's $1,000, therefore your orders will get closed immediately using a Margin Call once your margin requirement falls below 100 percent.
Most brokers don't set 100 Percent margin requirement, but there are those brokers that set 100 Percent margin requirement are not suitable for you at all, even those that set 50 percent margin requirement are still not good-enough. Choose those set 20% trade margin requirements, in fact, the brokers that set at 20% Forex Margin Requirement are the best since due to the likely-hood they liquidate-out your trade using a Margin Call is reduced as shown in the example above.
Safe Margin Level Forex - Free Margin Forex and Used Margin - Forex Margin Level Percentage Calculation Discussed
