Free Margin & Margin call

Free margin is the cash value of what you have available to use as margin for opening any new trades. 

Free margin = equity – margin of open trades. 

A margin call will happen when your equity is no longer larger than the margin required by your broker to support all your open trades. “Margin call” in an old-fashioned term – in modern Forex trading, your broker will simply close enough of your open trades to make sure that your equity is at least as big as the required margin on the remaining trades which stay open. Forex brokers have written policies on how they do this so if you are interested, you can ask your broker how they operate a margin call. Read more ...

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