Trade Stock Indices

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 & might 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

In trading, if a trader has $1,000 and employs a leverage of 100:1 to acquire 1 standard lot worth $100,000, the margin for this trade is the $1,000 in their account. This amount represents the risk, as it could be lost if the trade moves unfavorably. The remaining $99,000 is borrowed, and the broker will automatically close the position with an Indices Margin Call if the original margin is diminished.

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's 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 dollars- at $200 you'll get a indices margin call.

What is 50 percent Indices Margin Requirement Level?

For 50 % requirement for this level before closing out your stock trades mechanically using what is known & referred to 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?

For stock indices trading under similar rules, if the broker applies a 100% margin requirement and initiates an indices margin call at $1,000, your open stock positions will be closed once the account balance reaches this threshold. Opening a one-standard lot position - even accounting for a 1-point spread - could reduce your account balance below $1,000. Since the required margin is set at 100%, any drop below this level will prompt the automated closure of your trades through the indices margin call feature.

Most brokers do not set 100 % margin requirement, but there are those online brokers that set 100 percent margin are not appropriate 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

Study More Lessons and Tutorials & Topics:

Stock Index Broker