Stock Indices Margin Call Calculator - Margin Call Indices
Free Stock Indices Trading Margin Indices and Used Stock Indices Trading Margin Indices
A margin call is when a trader's account free indices margin goes below the required indices margin level which's set by broker. This means because the free indices margin in the trader's account has gone below required indices margin level then the trader receives a indices margin call and some of the open trade transactions in trader's are closed by broker til this margin level goes back up to the above required indices margin level.
Some of the open trade transactions may be closed or all of the open trades might be closed-out if this margin call is automatically executed by broker.
What's Stock Indices Margin Requirement Level?
Now if Your Stock Indices Leverage is 100:1
When trading if you have $1,000 & use leverage of 100:1 & buy 1 standard lot for $100,000 your indices margin on this trade transaction is the $1000 in your account, this is the money that you will lose is your open trade moves against you the other $99,000 that is borrowed, the broker will close out the open trade transactions automatically using a Stock Indices Margin Call once your $1,000 has been taken out by market.
But this is if your broker has set 0 percent Indices Trading Margin Requirement before stopping out your stocks trade transactions automatically using this Margin Call.
What is 20 % Margin Requirement Level?
For 20% margin requirement before closing your stock trade transactions automatically using a Indices Margin Call, then your stocks trade transactions will be liquidated once your trading account balance reaches $200 - at $200 you will get a indices margin call.
What is 50 percent Indices Margin Requirement Level?
For 50 percent requirement of this level before stopping out your stock trades automatically using what is known as a margin call, then your open trades will be stopped out once your trading account balance reaches $500 - at $500 you will get a indices margin call.
What is 100 Percent Indices Margin Requirement Level?
If the broker sets 100 Percent indices margin requirement of this level before liquidating your open trade transactions automatically using a Stock Indices Margin Call - at $1,000 you will get a indices margin call, then your stock trade transactions will be liquidated once your trade account balance reaches $1,000: Meaning stock trades will close-out as soon as you execute a one standard contract on this trading account because even if you pay 1 point spread your account balance will go to below $1,000 & needed indices margin requirement percent is 100 Percent that's $1,000, hence your orders will get closed immediately using a Stock Indices Margin Call once your indices margin requirement falls below 100%.
Most brokers don't set 100 % margin requirement, but there are those brokers that set 100 % margin aren't suitable for you at all, even those who set 50 % margin requirement are still not suitable. Select those set 20 % index margin requirements, in fact, those brokers that set at 20 % Margin Requirement are some of the best because the likely-hood they close-out your trade using a Stock Indices Margin Call is reduced as illustrated in the above example.
Safe Margin Level Stock Indices - Free Indices Trading Margin Indices and Used Indices Trading Margin Stock Indices - Stock Indices Margin Level Percent Calculation Discussed
