Trading Discussion What is a margin call and how to avoid it.

[Razor1911]

Most of the traders who newly joins the market, doesn't have clear idea about how the forex market works. Many such traders face losses due to their inexperience and ultimately quits forex market after that. But gaining knowledge is very much important, and it's a continuous process.

The most important thing that a trader should learn is how to avoid margin call. Now, What is a margin call? Suppose you have an open position, and it is trading in loss. If the amount of loss goes beyond 80% of the total margin available, margin call will get triggered and all your open positinlons will get Liquidated. In other words your whole account will be blown off, and only remaining 20% will be availble.

Now the question is, how to avoid margin call. The best way to avoid margin call is by having stop loss while trading. When you use stop loss, the price even if moves Suddenly, will not go to that extent that it will get caught by margin call. That is why we should always use stop loss while trading.

 

[Ray Martinez]

For making good money, forex is the best option in the investment market. However, it is easy to say rather doing it. If trader have good knowledge about the market, they can make money from it. But a good broker is also important in this matter. Many traders lose money due to scam broker. traders should avoid it. That’s why I trade with Forex4you.

 

[Razor1911]

For making good money, forex is the best option in the investment market. However, it is easy to say rather doing it. If trader have good knowledge about the market, they can make money from it. But a good broker is also important in this matter. Many traders lose money due to scam broker. traders should avoid it. That’s why I trade with Forex4you.

Exactly, it is easy to say that it's simple to make good money here. But in practically it is very hard to earn money here. The knowledge and skills should be high and should have peoper management of risk in order to gain hgod profit. Other wise loss is Imminent.