{"id":14927,"date":"2010-11-07T12:31:00","date_gmt":"2010-11-07T17:31:00","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=14927"},"modified":"2010-11-07T12:31:00","modified_gmt":"2010-11-07T17:31:00","slug":"margin-calls-in-the-forex-currency-exchange","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/11\/07\/margin-calls-in-the-forex-currency-exchange\/","title":{"rendered":"Margin Calls In The Forex Currency Exchange"},"content":{"rendered":"<p><strong>By James McKee<br \/>\n<\/strong><br \/>\nAh the dreaded margin call, in this article I will be discussing the  topic in-depth to give traders a better understanding of when and where  the line in the sand is truly drawn. Before recent US policy changed the  standard &#8220;lot&#8221; purchased in the forex market was for $100,000.00, which  has changed to $50,000.00 recently. A margin call is the point at which  a trade loses to the point that your money is nearly lost and the  losses are about to cut into the leverage put up for you by your broker.  Having solid stop loss and take profit figures will help to ensure that  the margin call does not come about with you completely unaware.<\/p>\n<p>A margin call might seem like a horrible thing but without it you would  end up owing your broker thousands of dollars beyond your investment.  Such a prospect is indeed a very scary thing and so a margin call when  cast in that light is not such a bad thing. By utilizing pivot points  and proper SL\/TP guidelines you can guard against the dreaded margin  call as much as possible. The other lesson here is to stay in touch with  your broker and always keep your phone handy.<\/p>\n<p>This is one of the aspects of the Forex currency exchange business that  is a fact of life, love it or hate it a margin call exists for a reason.  We all have to make money, and so do our brokers. We must all bear in  mind that we are responsible for our own decisions, our own trades, and  the resulting profit or loss that may occur. Many brokers will offer  advice with regard to trades and they do mean well, but ultimately only  you can truly make the decision, so when that phone does ring do not be  caught off guard! Happy trading!<\/p>\n<h3>About the Author<\/h3>\n<p>Author is a Forex trader and financial analyst residing in  Denver, Colorado. To stay up to date on all the latest developments in  the financial world and beyond be sure to check out the <a href=\"http:\/\/forex.tradingcharts.com\/foreign_exchange_rates\/\">forex exchange rates<\/a> regularly.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By James McKee Ah the dreaded margin call, in this article I will be discussing the topic in-depth to give traders a better understanding of when and where the line in the sand is truly drawn. Before recent US policy changed the standard &#8220;lot&#8221; purchased in the forex market was for $100,000.00, which has changed &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/fx\/2010\/11\/07\/margin-calls-in-the-forex-currency-exchange\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Margin Calls In The Forex Currency Exchange&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-14927","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/14927","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=14927"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/14927\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=14927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=14927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=14927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}