What is margin call in forex

Assume you are a successful retired British spy who now spends his time trading currencies.

Therefore it is the Equity, NOT the Balance that is used to determine Usable Margin. Your Equity will also determine if and when a Margin Call is reached.

As long as your Equity is greater than your Used Margin, you will not have Margin Call.

As soon as your Equity equals or falls below your Used Margin, you will receive a margin call. Your Equity would remain unchanged at 10, But this example does not end with such a fairy tale.

This means that some or all of your 80 lot position will immediately be closed at the current market price. Assuming you bought all 80 lots at the same price, a Margin Call will trigger if your trade moves 25 pips against you.

How does margin trading in the forex market work?

How did we come up with 25 pips? My life has been filled with terrible misfortune; most of which never happened.

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Margin Call

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