Forex Zone - Forex Forum
  1. Forex Zone - Forex Forum
  2. General Category
  3. Forex Education
  4. understanding margin call (MC) and stop out (SO)

understanding margin call (MC) and stop out (SO) in Forex Education_67f83e56a90ff

understanding margin call (MC) and stop out (SO)

Discussion started on Forex Education

Print
Pages: [1] 2 3 ... 12   Go Down

Fxortrader

  • Hero Member
  • Posts: 1215
  • Points: 0
  • Likes Received: 566
  • Reputation: +15/-3
Margin Call broker is a warning system from the broker if the equity you have is not sufficient for the margin needed to hold the position .

 the Stop Out is a forced closing of a trading position, because equity funds have been reduced and do not meet the margin needed to hold a position. So, the forced closure that you experience is not called the Margin Call broker

Linkback: https://www.forex.zone/forex-education/29/understanding-margin-call-mc-and-stop-out-so/1672/
#1 - March 01, 2019, 08:55:48 AM

Alfrians

  • Sr. Member
  • Posts: 311
  • Points: 66
  • Likes Received: 108
  • Reputation: +3/-0
Quote from: Fxortrader on March 01, 2019, 08:55:48 AM
Margin Call broker is a warning system from the broker if the equity you have is not sufficient for the margin needed to hold the position .

 the Stop Out is a forced closing of a trading position, because equity funds have been reduced and do not meet the margin needed to hold a position. So, the forced closure that you experience is not called the Margin Call broker
apparently different understanding of Margin call with stop out, means that the MC does not necessarily lose funds!

thank you, sir.
#2 - March 01, 2019, 11:11:30 AM

senja

  • Starter
  • Posts: 9
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
MARGIN CALL and this stop out level is important as a second stop loss if the trader does not use SL in his trading.
#3 - May 23, 2019, 07:22:55 AM

Sponsored

understanding margin call (MC) and stop out (SO) in Forex Education_6803a6c52eb12
#4 - Today at 07:02:33 AM

Scalpingfx

  • Jr. Member
  • Posts: 82
  • Points: -5
  • Likes Received: 12
  • Reputation: +1/-1
Quote from: Fxortrader on March 01, 2019, 08:55:48 AM
Margin Call broker is a warning system from the broker if the equity you have is not sufficient for the margin needed to hold the position .

 the Stop Out is a forced closing of a trading position, because equity funds have been reduced and do not meet the margin needed to hold a position. So, the forced closure that you experience is not called the Margin Call broker
I experience SO more, compared to 1: 2. haven't found a identity as a trader, sir
#4 - May 23, 2019, 05:08:23 PM

susana

  • Newbie
  • Posts: 12
  • Points: 0
  • Likes Received: 1
  • Reputation: +0/-0
The MC and STOP OUT are located the same or can MC first and STOP OUT depends on the broker's policy.
#5 - May 23, 2019, 05:25:28 PM

yannu

  • Newbie
  • Posts: 10
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
Quote from: Fxortrader on March 01, 2019, 08:55:48 AM
Margin Call broker is a warning system from the broker if the equity you have is not sufficient for the margin needed to hold the position .

 the Stop Out is a forced closing of a trading position, because equity funds have been reduced and do not meet the margin needed to hold a position. So, the forced closure that you experience is not called the Margin Call broker
should before there is a margin call warning, traders have to do a cut loss especially if they experience a stop out because the best strategy is to cut losses as early as possible.
#6 - May 23, 2019, 06:28:25 PM

lilly

  • Newbie
  • Posts: 10
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
if you want safe capital then just trading dibroker that applies a large stop out for example 50 percent SO then your capital is still a lot even though exposed to the MC ;D
#7 - May 23, 2019, 07:50:54 PM

dinda

  • Newbie
  • Posts: 10
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
if we can understand and utilize the stop out of the broker, the account will actually be far from the MC.
#8 - May 24, 2019, 02:51:43 AM

yati pesek

  • Newbie
  • Posts: 10
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
many traders mistakenly think that if the account has been hit by a margin call it is the end of an account, depending on how big the stop level is.
#9 - May 24, 2019, 03:17:05 AM

Fitry

  • Newbie
  • Posts: 10
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
stop out of each broker is different, therefore the stop out level is also sometimes one of the considerations of traders in choosing a broker.
#10 - May 24, 2019, 03:41:18 AM

Sponsored

understanding margin call (MC) and stop out (SO) in Forex Education_67f978d8d1a13
#11 - Today at 07:02:33 AM

iswandi

  • Newbie
  • Posts: 10
  • Points: 0
  • Likes Received: 1
  • Reputation: +0/-0
The closing of this position is called Stop Out. Most Indonesian traders place the wrong understanding of Stop Out and Margin Call. Though in truth, MC is a savior feature for traders who are almost out of capital.
#11 - May 24, 2019, 05:23:29 AM

gandasuli

  • Newbie
  • Posts: 10
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
choose a broker that provides leverage that fits your strategy and style but don't forget the stop level set by the broker, at least look for those who apply 50 percent SO...
#12 - May 24, 2019, 12:00:48 PM

rugby

  • Starter
  • Posts: 8
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
margin call is like the devil most feared by traders because by being hit by MC then our capital will run out, that is the wrong assumption because the MC is only a warning before being hit out, stop out not necessarily our money will run out depending on the stop out level determined by the broker.
#13 - May 24, 2019, 06:14:58 PM

pantay

  • Newbie
  • Posts: 10
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
traders in general have mispercepted the margin call so they are not keen to understand the MC and stop out how it relates to capital security.
#14 - May 24, 2019, 06:29:32 PM

perjaka

  • Newbie
  • Posts: 11
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
Margin calls are events where we lose funds in forex. I really hate margin calls
#15 - May 24, 2019, 10:24:21 PM
Print
Pages: [1] 2 3 ... 12   Go Up
  1. Forex Zone - Forex Forum
  2. General Category
  3. Forex Education
  4. understanding margin call (MC) and stop out (SO)

Members:

0 Members and 1 Guest are viewing this topic.


understanding margin call (MC) and stop out (SO) in Forex Education_collapse Refresh Activity Stream (It's automatically updated) Open Activity Stream in Popup Activity:


understanding margin call (MC) and stop out (SO) in Forex Education_67f8365a73a8c