How can you avoid this unanticipated surprise? Margin calls can be effectively avoided by carefully monitoring your account balance on a regular basis, and by using stop-loss orders on every position to minimise the risk. Another smart action to consider is to implement risk management within your trading. By managing your the potential risks effectively, you will be more aware of them, and you should also be able to anticipate them and potentially avoid them altogether.
There is one unpleasant fact for you to take into consideration about the margin call Forex. You might not even receive the margin call before your positions are liquidated. If the money in your account falls under the margin requirements, your broker will close some or all positions, as we have specified earlier in this article. This can actually help prevent your account from falling into a negative balance.

Retail or beginning traders often trade currency in micro lots, because one pip in a micro lot represents only a 10-cent move in the price. This makes losses easier to manage if a trade doesn't produce the intended results. In a mini lot, one pip equals $1 and that same one pip in a standard lot equals $10. Some currencies move as much as 100 pips or more in a single trading session making the potential losses to the small investor much more manageable by trading in micro or mini lots.
Once an investor has started buying a stock on margin, the NYSE and FINRA require that a minimum amount of equity be maintained in the investor's margin account. These rules require investors to have at least 25% of the total market value of the securities they own in their margin account. This is called the maintenance margin. For market participants identified as pattern day traders, the maintenance margin requirement is a minimum of $25,000 (or 25% of the total market value of the securities, whichever is higher).
In the last Forex Trading Diary Entry (#1) I described how to build an automated trading system that hooks into the OANDA forex brokerage API. I also mentioned that the next steps included constructing a portfolio and risk management overlay for all suggested signals generated by the Strategy component. In this entry of the diary I want to discuss my attempt to build a functioning Portfolio component and how far I've currently progressed. 

Have been using many forex robots in the last years and I trade the Longbow EA with the H1 and M15 settings. This system needs time and since it uses very good risk settings i am very comfortable with it. Support is great and I can recommend it to those who are not looking for the holy grail but want to simply make good profits with low risk settings.
Since currencies always trade in pairs, when a trader makes a trade, that trader is always long one currency and short the other. For example, if a trader sells one standard lot (equivalent to 100,000 units) of EUR/USD, they would have exchanged euros for dollars and would now be short euros and long dollars. To better understand this dynamic, an individual who purchases a computer from an electronics store for $1,000 is exchanging dollars for a computer. That individual is short $1,000 and long one computer. The store would be long $1,000, but now short one computer in its inventory. The same principle applies to the FX market, except that no physical exchange takes place. While all transactions are simply computer entries, the consequences are no less real.
These articles, on the other hand, discuss currency trading as buying and selling currency on the foreign exchange (or "Forex") market with the intent to make money, often called "speculative forex trading". XE does not offer speculative forex trading, nor do we recommend any firms that offer this service. These articles are provided for general information only.
In FX, the investor cannot attempt to buy on the bid or sell at the offer as is the case in exchange-based markets. On the other hand, once the price clears the cost of the spread, there are no additional fees or commissions. Every single penny gained is pure profit to the investor. Nevertheless, the fact that traders must always overcome the bid/ask spread makes scalping much more difficult in FX. 
We also offer an IRA Margin account, which allows you to immediately trade on your proceeds of sales rather than waiting for your sale to settle. You can trade assets in multiple currencies and trade limited option spread combinations. IRA margin accounts have certain restrictions compared to regular margin accounts and borrowing is never allowed in an IRA account. Futures trading in an IRA margin account is subject to substantially higher margin requirements than in a non-IRA margin account. Margin rates in an IRA margin account may meet or exceed three times the overnight futures margin requirement imposed in a non-IRA margin account1.
Forex robot developers have many reasons to publish their inventions for free; they may be promoting a premium version up-sell of the free one and we think that this is the case with Blessing 3 EA or may be willing to prove their professionalization dealing with Forex market to attract customers to subscribe in some other related paid service provided by the same developer or they might be just giving it away!
Not all securities can be bought on margin. Buying on margin is a double-edged sword that can translate into bigger gains or bigger losses. In volatile markets, investors who borrowed from their brokers may need to provide additional cash if the price of a stock drops too much for those who bought on margin or rallies too much for those who shorted a stock. In such cases, brokers are also allowed to liquidate a position, even without informing the investor. Real-time position monitoring is a crucial tool when buying on margin or shorting a stock.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.
Forex trading is the largest market in the world, with nearly $2 trillion traded on a daily basis. There are many factors that can contribute to changes in the value of a currency. Some of these factors include terms of trade, sometimes referred to as the balance of trade, which is when there's an improvement in the terms of the trade thanks to the price of a country's exports being higher than the prices of its imports. Other facts include differences in inflation rates, which basically involve the value of the currency, and public debt, which typically occurs when foreign investors lose confidence in the economy and make fewer or no investments and leads to inflation and devaluation of the home country's currency.
I am very interested in online Forex trading for the first time. I have been searching for a really good Forex Robot because I know nothing about technical. Although I am open to reasonable risk however I do not want to loose money for nothing. Any suggestion for a really good Forex Robot, that is easy to operate and works all by itself so that I do not have to do anything in decision making? Any suggestions about do's
Inflation Rates: Countries with inflation rates that are lower than other countries experience increased currency values. These increases mean that the purchasing power has also increased. The country that previously spent $1 million for 10,000 units of a foreign product is now able to purchase 18,000 units with the same $1 million, or $750,000 for the same 10,000 units. High inflation rates mean that there will likely be depreciation in the value of the currency.
In other asset classes, the smallest increment of a change in asset price is known as a "tick". In foreign exchange trading it is known as a "pip" (Price Interest Point). It is the smallest increment in any currency pair and is (usually) 1/100th of a percent, also known as a basis point. Since the majority of major currency pairs are priced to four decimal places, the smallest change occurs on the last decimal point.
Margin requirements for futures and futures options are established by each exchange through a calculation algorithm known as SPAN margining. SPAN (Standard Portfolio Analysis of Risk) evaluates overall portfolio risk by calculating the worst possible loss that a portfolio of derivative and physical instruments might reasonably incur over a specified time period (typically one trading day.) This is done by computing the gains and losses that the portfolio would incur under different market conditions. The most important part of the SPAN methodology is the SPAN risk array, a set of numeric values that indicate how a particular contract will gain or lose value under various conditions. Each condition is called a risk scenario. The numeric value for each risk scenario represents the gain or loss that that particular contract will experience for a particular combination of price (or underlying price) change, volatility change, and decrease in time to expiration.
In order to understand Forex trading better, one should know all they can about margins. Forex margin level is another important concept that you need to understand. The Forex margin level is the percentage value based on the amount of accessible usable margin versus used margin. In other words, it is the ratio of equity to margin, and is calculated in the following way:
Once an investor has started buying a stock on margin, the NYSE and FINRA require that a minimum amount of equity be maintained in the investor's margin account. These rules require investors to have at least 25% of the total market value of the securities they own in their margin account. This is called the maintenance margin. For market participants identified as pattern day traders, the maintenance margin requirement is a minimum of $25,000 (or 25% of the total market value of the securities, whichever is higher).
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for everyone. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. Remember, you could sustain a loss of some or all of your initial investment, which means that you should not invest money that you cannot afford to lose. If you have any doubts, it is advisable to seek advice from an independent financial advisor.
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