What is Margin Call Margin Call

What is Margin Call Margin Call

We studied 4 in the course of Forex education today will be about what the meaning Margin Cool Margin Call and how to calculate and know Margin Cool

And why everyone is afraid of it. Follow us with the lesson and you will learn about Margin Cool and how to avoid reaching the Margin Cool

Margin Cool: It comes when you lose the maximum amount in your account you can lose and therefore come to the red tape before it to alert you that the company will close the deal on its own because you can not lose more than the amount available in your account "Margin available"

Balance: The first thing you have in the red box is your account balance before opening any card as shown 9985

equity or mobile balance: is your current account balance after the opening of the transaction If you are a winner will find the balance in front of you and if you lose you will find the value of your account before you if you close now you will get this amount

Margin is intended here Margin reserved (margin): and means the amount reserved from your account when opening any deal

Here the amount of $ 1000 has been opened contract and the value of the point here as notes $ 10

Ie if you earn 10 points your account has increased 10 points * $ 10 = point = $ 100

If you lose 10 points from your account 10 points * $ 10 value = point = $ 100 from your account

Available margin: free margin

Is the amount remaining in your account after opening the transaction and discount the Margin used and as in our example here 8935

If Margin Cool to come and close from the same deal in case you lose the value of available margin / point value

8935 Available margin value / $ 10 Value of current point = 893.5

This is what you should simply tariff in case you do not use Stop Loss Stop Loss order and leave your deal open

The result was a loss in the point when you lose the number of points 893 will close the account from the same and spend the Margin Cool

But in most companies do not wait to lose the value of the entire account, but be less than that means that once you lose 800 points or 750 points start Margin Cool to appear

We hope that the explanation is simple and clear to everyone and if there is any sow you can leave a comment

Now we are moving to the fifth lesson in the free forex education course from ForexCookash