If I make a trade using, say, $50 margin, and I have closed that trade, is that $50 immediately available for another trade, or is it not available until that trade is actually settled by the broker in two or three days? That will make a huge difference if my account has $100 to $200 in it. Thanks for any info!!!
Your margin is immediately available to be used again, as soon as you close your trade.
Thanks Clint!! That’s what I was hoping to hear. Appreciate the info.
While we’re talking about margin, I will pipe in with my own silly question…say I have an account with 10k, and I place 1 regular order @ 100:1 margin which takes $1000 out of my account to place…if it draws down over $1000 does that trade close automatically or does it start eating into my remaining 9k account balance? Thanks!
Mike
Without a stop loss your whole account is fair game & liable to be
wiped out.
Also the opposite applies if you do not place a take profit you are
able to make unlimited profit. :lmao:
Thanks Daydreamer that is what I was afraid of :eek:
I use MetaTrader and from what I’ve read, the TP/SL settings are not broker side, they are client side so if I lose internet connection, computer dies, etc, I could be wiped out in a big move…
Is it recommended to not keep all of your “account” that is used in your money management strategy at the broker level? Thanks for the clarification!
Mike
Solid T/P & S/L ie set when you open the trade or moved up
or down manually are server side.
It is only trailing stops which are unprotected & need a continuous
feed.
I personlly only leave enough in the account to cover the trades
I am in, usually transfering out profit once a month to keep a specific
level.
Especially now while interest rates are so low. (Oanda pay interest on
account balance)
Solid T/P & S/L ie set when you open the trade or moved up
or down manually are server side.
That is good to know, I was under the wrong impression with those 
countpipula, sorry for the threadjack!
Mike
Hi, Mike
Regarding your initial question (quoted above): In the example you cited, you put on a position of one standard lot (100,000 units of currency) in a $10,000 account with 100:1 leverage; thus, the margin required to place this trade is $1,000. So far, so good.
What hasn’t been explained is this: If your trade goes against you, every pip of loss, including the spread, is deducted from the $9,000 of available equity left in your account. The $1,000 margin is [B]not available[/B] to cover the spread, or losses.
Suppose you had no stop-loss, and some extraordinary event drove the price of your currency pair 900 pips against you. That translates into a $9,000 loss (at $10 per pip), and that loss wipes out the available equity in your account. At this point, the broker closes your position and issues a margin call. Your account is not closed. Your $1,000 margin is released, and now becomes the available equity in your account.
Think of the margin as being in an escrow account: it’s your money, but it’s not available to you while it’s designated as margin.
Regarding DayDreamer’s answer to your second question (a couple of posts ago): In my accounts with FXCM, limit orders (T/P orders), stop-loss orders, and trailing stops [B]all[/B] reside on FXCM’s servers. So, after these orders are placed, it doesn’t matter whether I’m connected to the internet or not — those orders will execute when the corresponding prices are hit.
I believe this is standard practice with all brokers. But, you should confirm this with your own broker.
Clint
pls have good money management…
risk 2% of your capital per trade !!!
Regarding DayDreamer’s answer to your second question (a couple of posts ago): In my accounts with FXCM,
If I recall FXCM do not run a metatrader4 platform?
The question asked specifically about MT4.
I use MetaTrader and from what I’ve read,