Forex Zone | Forex Forum

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

Discussion started on Forex Education

Print
Pages: [1] 2 3 ... 12   Go Down

Fxortrader

  • understanding margin call (MC) and stop out (SO) in Forex Education_index
  • Posts: 1224
  • Points: 0
  • Likes Received: 553
  • Reputation: +15/-3
understanding margin call (MC) and stop out (SO) in Forex Education_xx
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

  • Posts: 380
  • Points: 176
  • Likes Received: 118
  • Reputation: +3/-0
understanding margin call (MC) and stop out (SO) in Forex Education_xx
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

  • Posts: 9
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
understanding margin call (MC) and stop out (SO) in Forex Education_xx
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

Scalpingfx

  • Posts: 82
  • Points: -5
  • Likes Received: 12
  • Reputation: +1/-1
understanding margin call (MC) and stop out (SO) in Forex Education_xx
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

  • Posts: 12
  • Points: 0
  • Likes Received: 1
  • Reputation: +0/-0
understanding margin call (MC) and stop out (SO) in Forex Education_xx
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

  • Posts: 10
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
understanding margin call (MC) and stop out (SO) in Forex Education_xx
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

  • Posts: 10
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
understanding margin call (MC) and stop out (SO) in Forex Education_xx
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

  • Posts: 10
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
understanding margin call (MC) and stop out (SO) in Forex Education_xx
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

  • Posts: 10
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
understanding margin call (MC) and stop out (SO) in Forex Education_xx
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

  • Posts: 10
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
understanding margin call (MC) and stop out (SO) in Forex Education_xx
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

iswandi

  • Posts: 10
  • Points: 0
  • Likes Received: 1
  • Reputation: +0/-0
understanding margin call (MC) and stop out (SO) in Forex Education_xx
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

  • Posts: 10
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
understanding margin call (MC) and stop out (SO) in Forex Education_xx
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

  • Posts: 8
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
understanding margin call (MC) and stop out (SO) in Forex Education_xx
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

  • Posts: 10
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
understanding margin call (MC) and stop out (SO) in Forex Education_xx
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

  • Posts: 11
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
understanding margin call (MC) and stop out (SO) in Forex Education_xx
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

Members:

0 Members and 1 Guest are viewing this topic.


* Similar Topics

xx
Why margin call

Started by Bayu maryanto on General Forex Discussion

1580 Replies
22003 Views 		Last post May 27, 2023, 02:41:33 AM
by Vernalta
xx
Margin Call

Started by Antint2010 on General Forex Discussion

307 Replies
3525 Views 		Last post May 27, 2023, 02:43:47 AM
by Vernalta
xx
the cause of the los or margin call?

Started by Bams24 on General Forex Discussion

373 Replies
4518 Views 		Last post May 27, 2023, 12:36:29 PM
by Ikhtiar
xx
Margin Call Pain

Started by Demnok Lannik on Forex Education

280 Replies
2840 Views 		Last post May 27, 2023, 01:00:18 AM
by Yengoc