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?
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.
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.
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.
Today Nifty index will have quite stiff resistance at 5888. If it manages to cross 5888, it may reach 5903 and 5917. If it Happens then bulls may take nifty to 5932 and 5948 levels. It can take on other side, below 5847 level, nifty may be dragged down to 5831 by bears. One can see some more action below 5813.