How to Avoid Margin Closeouts
(https://www.oanda.com/resources/lega...l/margin-rules)
Take proactive measures to avoid getting a margin closeout on your account. For example,
(https://www.oanda.com/resources/lega...l/margin-rules)
Take proactive measures to avoid getting a margin closeout on your account. For example,
- Monitor the status of your account continuously.
- Use a lower leverage so you can impose a higher margin requirement on yourself. This way, you will not be tempted to enter into positions beyond your comfortable leverage level. You will also be aware of a potential margin closeout sooner, and be able to increase leverage as a last resort to head it off.
- Specify a stop-loss order for each open trade to limit downside risk. You can specify the stop-loss rate at the time you issue a trade, or add a stop-loss order at any time for any open trade. You can also change your stop-loss orders at any time to take current market prices or other conditions into account. (Click on an open trade in the "Trades" table, then click "Modify" in the pop-up window to change the stop-loss.)
Note: Your trade is closed at the current fxTrade rate, which may vary from your stop loss price -- especially when trading resumes after periods of market closure.
If you happen to be close to a margin closeout, the unique features of the fxTrade platform provide some simple strategies to avoid it:
- Incrementally reduce the size of your positions as you get close to a margin closeout. (fxTrade allows you to trade in arbitrary units, as opposed to fixed lots, which makes this simple to do.)
- Close individual positions to reduce the amount of margin required.
- If you are using a lower leverage, you can increase the leverage on your account as a last resort.
- Transfer additional funds into the account from another subaccount.
- Add funds to the account. Note, however, that the time it takes to add funds could mean your funds arrive too late.
Disclaimer: Not an agent of Oanda.
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