Margin

Margin is the amount required of you to deposit with your broker to serve as collateral which enables you to access leverage. Leverage means loan. Let's assume you have opened a forex account with a broker and deposited $500. Depending on the range of leverage your broker offers and what you choose, you can use the meager $500 to control a standard account worth $100,000. You may also decide to only go for a $10,000 mini account or even $1000 micro account. Factors that will lead to a margin call: 1. Ignorant of news events. Most ignorant traders often have their accounts wiped out during news events releases. I therefore recommend that you get familiar with Economic calenders. 2. Over trading: don't open more positions than you should so that you will not exceed your trading limits and goals. 3. Have a trading system. To succeed in trading you need a proven and tested decent trading system.4. Develope a trading plan: a plan gives you the road map to your destination. When you have no plan you will surely not know when you miss the way. 5. Know where to place your stop loss orders to avoid being stopped just before price resumes in your analyzed trend and entry direction. 6. Monitor your margin account. If you do not know when your account is running into Margin Call you certainly will not know when you should cut your losses. 7. Identify market trend: your trading system should be able to tell you how to identify new market trends, trend corrections and trend reversals. 8. Don't allow maximum draw down in your account.