DislikedHi, I'm new to Forex and just started working my way through babypips but I have a question that I can't seem to find an answer to. According to ibfx (not sure if url link is permissible here), margin level is defined as: margin level = current equity in the account / current amount of margin in use I've heard that brokers will make margin calls when margin levels are at 50%, sometimes 80%. I do not understand why this is the case. I would think that as long as the equity in the account is equal to or greater than the amount required to open the...Ignored
and dangerous if/when you have semi high lot size position and if it'd decrease you will see that your position sooner goes to below free margin
level and finally stopped out when you don't see any considering (even not more than 1 pip !) market price move in the chart !!!
This would occur even in good top ten broker too ! not every single day but at nearly holidays time and of course in scam brokers
So be careful not all your potential fortune deposit to an account and take position not more than 20 percent in aggressive plan in a low amount account
and not more than 5 at a medium one ($1000 ~ $3000) . Good luck