Trade with explained margin call & stop out details
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MARGIN TRADING INVOLVES SIGNIFICANT RISK TO YOUR INVESTED CAPITAL
or try a FREE Demo Account
MARGIN TRADING INVOLVES SIGNIFICANT RISK TO YOUR INVESTED CAPITAL
AN EXAMPLE - When a loss occurs when holding a buying position
(*)"Margin maintenance ratio" indicates the ratio of net assets to the margin requirement margin. "Margin maintenance ratio (%)" = "effective margin" ÷ "necessary margin" × 100
When the margin maintenance rate falls below 80% and becomes subject to margin call, the profit and loss display column of MT4's terminal window is displayed in red.
When the margin maintenance rate drops to 50% or less, the loss cut (forced settlement) is executed in order from the position with the big evaluation loss among the open positions held by the customer. The margin maintenance rate can be confirmed within the transaction tab of the MT4 terminal window or within the cTrader open position tab.
AN EXAMPLE - Loss cut execution order when there are three unsettled openings
Open position | Appointment date | Valuation loss | Order in which Rosscat is executed |
---|---|---|---|
Position A | Xx hours xx minutes on Jun 1 | -20,000 | No. 2 |
Position B | Xx hours xx minutes on Jun 4 | -40,000 | No. 1 |
Position C | Xx hours xx minutes on Jun 8 | -2,000 | No. 3 |
* Depending on market conditions, the order of settlement contracts may be changed.
Since we enforce all transactions through "Liquidity Providers" (a network of financial institutions such as international investment banks and securities companies, which are commonly known as interbanks and are recognized worldwide) If liquidity declines markedly due to factors such as national holidays, economic trends, trading hours, etc., Rosscat may not be done in order.
MARGIN TRADING INVOLVES SIGNIFICANT RISK TO YOUR INVESTED CAPITAL