Posts Tagged ‘account’
Can you explain windows Magin and margin calls me to forex trading?
Hi, I'm new to Forex and just started working my way through BabyPips but I have a question I can not find an answer. According ibfx (not sure if it's allowed URL link here), at the margin is defined as: level of bank capital = current account / current amount of margin to use I have heard that the brokers will make margin calls, when levels are within the margin of 50% sometimes 80%. I do not understand why this is the case. I would think that, while the equity in the account is less than the amount needed to open the position that trade could be sustained. I can see a margin call, if a fluctuation of a seed equity would fall below this amount, but I do not see a margin of 50% used for this. If someone could provide some numbers example, it might be a help for me clarify this. Thanks Fortexwindo
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Forex Margin and Forex Money Management