a lot of members in the forum are confused with the terms margin call and stop out. He should learn from these mistakes and not do them in future. In case market is not going as planned, stop out level exceeds the predetermined level. Now, in the age of the Internet trading, brokers do not call the customers and the definition of the term has changed. This strategy means that the first failed tradewill kill your deposit.
Leverage, Margin, Balance, Equity, Free, margin, Margin, call And Stop Out What does free margin mean in forex Swing trading entry signals Trading Margin, level vs, margin, call How does margin trading in the forex market work?
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When we got the margin call, the best thing we should do is to stay forex 20 pips away from the market for several hours, or until we feel relax and cool off our head from such stressful feeling and tension. That particular level at which brokers stop your existing losing positions are stop out levels. This means that YOU cannot lose more than what YOU have IN your account. If your position goes against you, and it goes to a 9,000 loss, the equity will be 1,000 (i.e 10,000 - 9,000 which equals the margin. Stop out is the immediate, forced closing of the trading position by a broker. The next point of our lesson will tell you what it is all about.
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