How do you prevent Margin call?

using the lot size should be adjusted to the amount of capital that we use. not to use excessive lot size. other than that, not too many open positions at one time. always put a stop loss as a preventive avoid large losses. I think that we step in order to avoid a margin call.

The more you stay away from margin call the more it will haunt you. How about reverse psychology? Embrace it and don't be afraid...don't avoid it...hehehe. Just remember when it's already staring at your face...don't flinch and don't run because you are scared...fight hard to save your account...even if margin call wins in the end...it's what you did in the last minute before it happens that counts best.

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Originally Posted by malik

Well said, you can stay away from a margin call if you could manage you capital well and you stick with small lot sizes with a reasonable stop loss level.

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use of large or small lot sizes, in my opinion depending on money management that we use. if we use a lot is too small, then the benefits that we get, can not be maximized. if we use a lot is too large, then the risk that we could also large. therefore need to use a wise money management so that we can get the maximum profit with minimal risk.

Do not entry forex market when you are not really sure with youre analysis are a good strategy to prevent our tading account from get margin call beside trading using stop loss in all of our trading position to prevent more bigger loss in our trading wrong decision.

yea we should improve our psychology but at the same time we should always be careful not to misuse the leverage.
whenever we trade big volumes with small capital,we should be more careful.

yea we should improve our psychology but at the same time we should always be careful not to misuse the leverage.
whenever we trade big volumes with small capital,we should be more careful.

if you're using stop loss you won't have to prevent margin call. but if you don't use it and in the middle chaos situation, then cut loss will be your only option, or you can also use hedging to help you give more time to thinking what's the best actions.

I've done both. but we should do the cut loss. because if we add to our ballance, our losses could even be bigger if the market price was not reversed. than we lose all our money, we better do the cut loss, at least we can save some money

If Forex is a business, so money management is a factor that determines whether you will doing this business as business class "stall" or business "professionals" who are also run by a professional. Do not trade forex with a style of a grocery shop , but run with the model as a supermarket. And this is the deciding factor in forex is money management. Without money management, you might get a profit in the short term, but not in the long run., your account will blown surely MC

There are a few tips to avoid margin call

1. Never risk more than 5% of your trading capital in a one-time trading.

2. Always use stop-loss order.

3. Never over-trading.

4. Do not let profits run into losses.