Big gaps and margin calls | Forex Factory

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Big gaps and margin calls

  • #1
  • First Post: Feb 10, 2014 1:48pm Feb 10, 2014 1:48pm
Hi. I don''t know if this question was asked before, but if there's a big gap at the open of a trading day that goes way off your account limit, does that mean you get into margin call for the difference? How about if you have a stop loss? thanks.
“A year from now you will wish you had started today.” -Karen Lamb
  • #2
  • Feb 10, 2014 3:00pm Feb 10, 2014 3:00pm
Yes.
Does not matter.
Check the small print, look for something like losses can exceed your deposit.
Quoting bogdan89
Hi. I don''t know if this question was asked before, but if there's a big gap at the open of a trading day that goes way off your account limit, does that mean you get into margin call for the difference? How about if you have a stop loss? thanks.
forget about tomorrow, just steal away into the night
  • #3
  • Feb 11, 2014 3:31am Feb 11, 2014 3:31am
Ya, you will get a MC, then the broker will charge you for liquidating the positions on your behalf. If you have a SL the trade will close when the price is reached in the overnight session.
But of course depending on what your are trading, the spread and margin will be way high
  • #4
  • Last Post: Feb 11, 2014 1:00pm Feb 11, 2014 1:00pm
Quoting bogdan89
Hi. I don''t know if this question was asked before, but if there's a big gap at the open of a trading day that goes way off your account limit, does that mean you get into margin call for the difference? How about if you have a stop loss? thanks.
Yes, you would get a MC and as others noted, find out more from your broker regarding margin calls, stop out, etc.
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