Yaw TRADES FOUNDATION

  Trading on margin   is a way for traders with limited capital to make significant profits (or losses). If you fail to understand the concept of margin or not knowing what to do when faced with a margin call from your broker, you will definitely experience the shock of your trading account blow up. Here are five ways to avoid a margin call. 1. Know WTF a margin call is. Understanding what margin call is and how it works is the first step in knowing how to avoid one. Most new traders want to focus on other details of trading such as technical indicators or chart patterns, but little thought is given to the other important elements such as  margin requirements ,  equity ,  used margin ,  free margin , and margin  levels . If you’re hit with a margin call out of the blue, this usually means you have no clue what causes a margin call and are opening trades without considering margin requirements. If this is you, you are doomed to fail as a trader. Guaranteed. A margin call occurs when you