How to avoid a margin both to you is to rely on a trading strategy to maintain capital management and most importantly, is the use of stop-loss
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How to avoid a margin both to you is to rely on a trading strategy to maintain capital management and most importantly, is the use of stop-loss
I think there is nothing that we can do to prevent Margin Call except to improve our psychology and to use good
money management and good risk management. Our good risk management will prevent it (I used SL Strategy)
but our psychology will determine it too.
That would be called Hedging, the US brokerswill not allow that, coz of the recent laws.
beside it wont do you any good if you are in a loss you will lock in that loss, its very hard to get outof that situation. Its not imposible but its hard.
when i just enter in forex then i dont paln any money management rules and result i got margin call after that day i always trade under my money management rules.
And from last 4 month i never got any margin call. but prob is one the returns are slow.
No my friend, I don't agree with you. You should not make any trade without any stop loss. what you said " Do Deposit to increase the margin" is something a trader should never do if he is losing consistently. He should first trade with another strategy and should save his deposit by reducing his losses.
The number one point to be considered in order to prevent a margin call is not making the mistake to fall into a big loss by just opening trades with the appropriate lot sizes and with a well calculated SL. It is better to prevent it than to control it.
A long time ago, before markets were run by computers, stock and options brokers would try to call traders. Today, that's pretty rare, especially in the forex market. By the time the call got through, price action would likely have either have moved you out of danger or wiped you out.