Margin Call

Blogging and Forex ZRGRZMXMFVK3,Margin Call
Margin call means liquidation is "forced" by the broker because your account does not have sufficient funds to cover / cover your positions are losers.

The basis for determining the Margin Call is usually there are 2 (dependent regulation of each broker):

Margin Level
System margin level used on MetaTrader platform. (Please do order with a demo account so you better understand the calculation of margins on the MetaTrader platform)

Level margin calculation formula is:

Level Margin = Equity / Margin used

Free Margin = Equity + Profit Margins + - Loss

Balance = Capital actual current (not yet reduced profit & loss)

Equity is your balance after the plus / minus profit & loss

At all positions clear (no open), Balance = Equity. Because the margin used = 0, Profit / Loss = 0, so it becomes the same as the Free Margin Balance. (See Equity formula above!). Free Margin is money you can withdraw if there are open positions (reserving funds free margin sufficient to withstand losses and prevent Margin Call)

For example the broker determine if Margin Margin Call Level 5% (example: FCMarket.com), then when the "margin used" x 5% = Equity, a margin call will occur. (One by one open position will be closed automatically by until trader is enough to cover loss).

On MetaTrader platform, a trader does not need to calculate the Margin Level manually, because if there are open positions Margin Level will automatically appear on the tab "Trade" in units of percent (%). Traders need to do is keep the margin level is not approaching the limit Margin Call broker. (Eg 5%)

The initial capital - Margins - Loss = 0
There is also the broker determine a margin call if the initial capital - Used Margin - Total Loss = 0. (This also can you imagine that the broker is using the Margin Level 100% when using MetaTrader calculation)

Deposit the initial capital of $ 300. If a trader opens a position trading GBP / USD mini lots (10000) requires margin: 10000 (mini lots) x 0002 (1:500) x 2.0000 = $ 40. So while capital is held as collateral (margin) to open a mini lot gbp / usd is $ 40. So the rest of the margin trader to hold losses were: $ 300 - $ 40 = $ 260

When the floating loss (loss) you reach $ 260 then there is no margin / the remaining funds to hold losses, so one by one your position will be closed automatically by the broker. Then the margin of $ 40 is locked temporarily as collateral to open a position of EUR / USD, will go back into your account after the position is clear / close, so your margin remaining $ 40 only).