Using margin call as a stop loss

Hi all,

I’ve been trading forex profitably for a while now with OANDA. I was just considering experimenting a very aggressive strategy with a very small sum – which I wouldn’t do with any other broker – and I’d like to know what you think about this.

I thought I could try maximizing my investments earnings by using margin calls directly as the stop loss.

For instance, if I have $10 in my account with 50:1 leverage and I want a 50 PIP stop loss on USD/something, what I’d do is entering the market with $400: that way, my available margin will be $2, a PIP is worth $0.04 and I have 200/4 = 50 PIPs before the margin call.

This was just a wild thought, I’d like to hear your input about this! Has any of you already tried it?


Sometimes you want to move your stop loss during the trade. This way you won’t be able to.

What is the advantage of doing it this way? It would also prevent you from having more than one open position at a time (not necessarily a bad thing, just something else to consider).

Oh great. More bad ideas and schemes rather
than concentrating on successful trading by
minimizing the risk as much as possible.
Use margin calls as stop loss?


And what will be your scheme when
the margin call practically blows your
account? Add more funds and go at
it again?

Some people don’t have the ability when to stop out. I’ve heard others use such a strategy to ensure they pull out when the trade goes against them. However, it’s only because they keep a small percentage of their overall bankroll in their brokerage account.

To me, it’s just a waste of time. If you want to use a stoploss, just use a stoploss. If you want to maximize your profits, then win more than lose and increase your lot size in relation to your overall bankroll.