Indices Margin Call Calculator - Margin Call Indices
Free Indices Trade Margin Indices and Used Indices Trade Margin Indices
A margin call is when a trader's trading 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 & 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 trade transactions might be closed out if this margin call is executed automatically by broker.
What's Indices Margin Requirement Level?
Now if Your Stock Indices Leverage is 100:1
When trading if you as a trader have $1,000 and 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 if your open trade moves against you - the other $99,000 dollars that's borrowed, the broker will close out the open trade transactions mechanically using a Indices Margin Call once your $1,000 has been taken out by market.
But this is if your broker has set 0 percent Stock Index Trade Margin Requirement before stopping out your stocks trade transactions mechanically/automatically using this Margin Call.
What is 20 % Margin Requirement Level?
For 20% margin requirement before closing your stock trade transactions mechanically using a Indices Margin Call, then your stocks trade transactions will be closed once your account balance reaches $200 - at $200 you'll get a indices margin call.
What is 50 percent Indices Margin Requirement Level?
For 50 percent requirement for this level before stopping out your stock trades mechanically using what is known as a margin call, then your open trade transactions will be stopped out once your trading account balance reaches $500 - at $500 you'll get a indices margin call.
What is 100 Percent Indices Margin Requirement Level?
If the broker sets 100 Percent indices margin requirement for this level before liquidating your open trades mechanically/automatically using a Indices Margin Call - at $1,000 you'll get a indices margin call, then your stock trade transactions will be closed once your trade account balance reaches $1,000: Meaning stock trade positions will close out as soon as you execute a one standard contract and lot on this account because even if you pay 1 point spread your account balance will go to below $1,000 & needed indices margin requirement % is 100 Percentage that is $1,000, hence your orders will get closed immediately using a Indices Margin Call once your indices margin requirement falls below 100%.
Most brokers do not set 100 % margin requirement, but there are those online brokers that set 100 percent margin are not suitable for you at all, even those who set 50 % margin requirement still are not good enough. Select and Choose those set 20 % index margin requirements, in fact, those brokers that set at 20 % Margin Requirement are among the best because the likely-hood they close-out your trade using a Indices Margin Call is reduced and minimized just as is illustrated and shown in the above illustration.
Safe Margin Level Indices - Free Indices Trade Margin Indices and Used Indices Trade Margin Stock Index - Indices Margin Level Percent Calculation Discussed
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