Help figuring out margin call against me!

Beginner Questions
1

I just had a margin call against me and I don’t know why :o Maybe someone here can help me to understand what just happened?

Firstly, I have $103,000 CAD equity in my demo account and leverage allowed is 100:1 so I placed an offer for $5 million USD and below is the log

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03:25:25 BID CANCELLED #49462464 reason: BID CANCELED BY USER
03:25:25 WARNING MARGIN CALL: cancelling older BID
03:25:24 Order FILLED at 1.0315 CAD (Parent Order #49462464 PLACE BID 5 mil. USD/CAD @ 1.0315 EXPIRES: GTC) - Position #10220152
03:25:24 BID ACCEPTED: #49462464 PLACE BID 5 mil. USD/CAD @ 1.0315 EXPIRES: GTC - Position #10220152

So what did I do wrong as the currency only fell about 5 pips against me, not 100 pips and there was no reason to cancel as I had enough equity?

I figured with leverage of 100:1 that with 103k of equity that I am safe up to a 100pip fall against me, yet it cancels my order and also says “BID CANCELED BY USER”, but I did not cancel it.

More confusing is that even though it says it was canceled, the position structure shows the order confirmed and when I was $2000 up, I closed and took profit and my equity reflects my profit.

2

checvk the margin policy, as soon as your magin level falls below the allowed level for the position you hold they will start closing you out,

If you have used 100% of you allowable leverage then it wouldnt take much of a movment against you before they would do that.

N

3

They talked about their policy, here it is below between the bars. So, since I was around 57% leverage, I am assuming their system was throwing out false messages in the message box. Do you think that is possible? Even though it supposedly canceled out the order, in the position summary box, the order was active and bouncing back between p/l.

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You can not run into debt. Our platforms are designed that should your leverage hit 200% it will hedge your trades therefore not allowing you to trade more then what you have.

Also if / when your equity goes below $100 your account is frozen meaning you can not place any more trades. At this point you can either “top up” your account and continue to trade or if you chose you can withdraw the remaining funds from your account…

5

Thank you for taking the time to break it down for me Cubanpip :slight_smile: So it looks like their software is a little buggy at times on their demo which is a little concerning, but it did execute my trade in the end, even if it does not reflect this in their message box, so maybe they have some safety over ride when false messages appear, at least I am hoping that will be the case when I decide to go live!

6

How do you see from my log that the price went down 7 pips and then goes up 11 pips and have a chart for it? I feel I have a lot to learn still!

8

Thanks again for all your helpful info! I’m using their web demo for now as I need to start somewhere.

I think if I was in the trading business 30+ years I would still never claim I know everything, so I’d always be weary of anyone who does, but there are people like yourself that know far more than I do about Forex and it’s great that you help us out now and then when we post what may seem like dumb questions.

I keep hearing good things about MT4 and JForex, but will probably play and trade with the web platform until I can enjoy all the extras the other platforms offer.

As far as you posting the chart, of course it did not bother me at all. I just wanted to know how you can do that as it’s all new to me still. To be honest, the only thing I feel comfortable doing on a live trade right now is to buy the one currency pair I really understand and then sell it again when it suits me and that’s about it, but I might as well start with something I know a little about.

10

What I want to know is how the hell you are trading 50 lot positions and dont know everything there is to know about forex. Especially a margin call question. If this is real money you are talking then wow…

11

He says it’s a demo account in his opening post.

12

Demo money, much easier to spend than real money :slight_smile: I asked about the margin call as it did not make sense and I was right. Appears to be a bogus message that the server spit out that’s all.

50 lots is not bad right now, I’m up $40k in my demo in 2 days, but I know it would blow up if it went the other way. Just want to test to see what messages come in the message box before I go live with a much much smaller amount.

13

You’re a good man Cubanpip! I hope I will learn enough oneday to help newbies like myself in the future.