Hi all,
When I traded on demo, if let’s say I opened a position, and that I still had some money left in my margin available part. The pair moves against my direction and therefore eats out my money that was in margin available. However, when the pair moves back to my direction, the money that the pair took from me due to margin call is given back to me, as if the margin call never happened.
Just wondering, does this situation also happen in a true live account?
Wllen1
Yes, but most probably in real life your order will be closed automatically short after margin call leaving you with a great loss and akward pain.
Uh… Isn’t that supposed to be margin closeout?
I have both in my account summary, and they show different figures.
Well, if you apply propper money and risk management you won’t have to bother with these questions again. I don’t even know how to calculate leverage because I barely use it.
So… Does it mean that you don’t leverage your account?
I have it but I don’t use it to much, i might use 1:5 maximum
Thanks for your help sir!
So while I weait for the reply, I dug a bit on oanda website.
If I understand well what they mean, it’s that if let’s say I have 70k in my trade positions, and that I have 35k deficit in my unrealized PNL, they will do a closeout on my positions to prevent further losses. Is that right? Cuz to be honest, I never had a loss of anything close half my margin. Even on a demo account.
You will have it, belive me, the higher the leverage the more negative your balance can go befor being kicked out.
I know… But I would be stopped out long before that lol
It’s quite straightforward. Depending on your broker Margin Call (which basically used to be when you might get a notification saying “watch out, you’re about to run out of money, either puts some more in or you might get stopped out”. Many brokers don’t really notify you anyway) ans Stopout Level, you will need to act accordingly.
What you need to know is the Stopout Level. A classic level might be 20%. That means that when your Equity (Balance +open positions) is equal to 20% of your margin requirement (which will depend on your open positions) then you will get stopped out.
Hope it helps
In a live account, I think you should kiss your money good buy. Remember, what your broker gives you is more like a credit and when you take risk and your broker feel you are no longer eligible to receive such credit due to low balance, your position is automatically closed. Am not sure if your money will come back to you in real account. You were losing were’nt you?
You might be a bit confused. A Stopout Level is there to have a buffer between your funds and not being left with a negative balance. It’s not an elegibilty requirement, it’s as simple as : if you don’t have any money left , you need to get stopped out. The reason there is a buffer is so that in case there is a big move or say a gap over the weekend, it doesn’t lead the account to be in negative balance for too much money. The reality is that brokers don’t really have much of a chance of recovering a negative balance, so would rather it didn’t go negative.
Expect a phone call from your broker shortly after margin call on a live account 
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