What is a Margin Call?
- 7월 13, 2017
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What is a Margin Call?
What is a Margin Call?
If the loss of the position held by the trader expands and falls below the remaining balance of the account, the action to force the target position to be cleared is called a margin call.
It is a device that allows you to cover losses only within the amount of your own investment in order to prevent losses that exceed your investment.
If there is no margin call, the loss may exceed the maintenance margin and the balance of the account, in which case you will not only lose all of your assets, but also have to pay additional losses to the gift broker.
Therefore, it can be said that it is a safeguard that keeps the trader's minimum funds in the rapidly changing foreign exchange market.
If possible, avoid marginal calls.
To avoid a margin call, leave a margin of margin and allow the position to be cleared with enough loss to cover.
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