What is Forex Margin Call?

By Ahmad Hassam

Many new forex traders all of sudden receive a margin call. Maybe they did not educate themselves properly about forex trading and started trading. Have you ever received the dreaded forex margin call? Whatever, you must be very clear about what is a forex margin call. But contrary to the popular opinion that a margin call represents that worst case scenario for the currency trader, this is far from the truth. The risk that is assumed when trading aggressively the currency markets often results in receiving a margin call. The worst case could be far worse.

To owe additional funds to the broker is actually the worse case scenario. A margin call is in fact a safeguard to protect a trader from losing 100% or even more of the money in the trading account. This uncomfortable position is largely avoided because of the existence of the margin call.

You will receive an actual call from your stock broker to add more funds to your margin account when equity is running low in your stock trading account. Unlike the world of stock trading, a margin call is not actually a physical call from your broker in forex trading.

This is what happens in forex trading when you get a margin call. There is no physical call telling you to add funds to your account. The trading platform software automatically closes out all the open positions and immediately realizes all losses at the prevailing market rates when a forex trader no longer has enough equity in the trading account to keep the open positions viable in forex trading. You might be thinking a cold hearted behavior of your forex broker.

Prices can move extremely fast in forex markets and because of the high leverage used, every price move is magnified. There are good reasons for automated margin calls in forex trading, although this may seem a bit cold hearted.

The forex margin call closes all open positions to help ensure that the trader does not lose the entire account or worse as a safeguard measure. The trading account can become depleted very quickly with not enough time to call for more funds when the traders equity runs low in forex trading.

Lets make it clear with an example. Suppose you have $1500 in your trading account. So exactly when is a margin call triggered? This depends exactly on the number and the size of the lots being traded, the leverage chosen and the equity in the account. Suppose you use a leverage of 100:1 to trade in standard lots of $100,000.

You want to trade one lot of EUR/USD. Since your account is in US Dollars, you need to convert it into Euros. Suppose the EUR/USD exchange rate is 1.3465. So you need $1346 to trade standard lot Euros 100,000 of EUR/USD. This is because Euros 1000 are needed to control Euros 100,000.

Suppose you are very new and dont know about stop losses, you start trading without putting stop losses in place. Your trading account has $1500. The margin required to keep the trade open is $1346. Each pip is exactly equal to $10 in this case.

There are no stop losses in place. The chances are you are going to receive a margin call soon. When can you expect to receive a margin call? You will receive a margin call when your equity drops below $1346. You have $1500 equity in your trading account. Your open position will be automatically closed when you receive a margin call. That means once you lose the excess equity in your account above the margin required to trade a standard lot that is $1500-$1346= $154. Assuming that there are no spreads involved. This is equal to just 15.4 pips loss. This example will make it clear the fast moving nature of the forex market and how using high leverage can suddenly result in getting a margin call. - 23309

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Try 1500 Pips a day Forex Signals. Discover a revolutionary Forex Robot Trading System!

Currency Day Trading - What Do I Need To Know?

By Jim OBrien Niall Lanquin Jonas Dempsey

A trader buying & selling forex in the same day is recognized as performing currency day trading. This implies that all trades are finished inside the same twenty-four hour period and nada is kept for over a day by the investor. Previously this type of forex business could only be indulged in by big companies & financial establishments but now anyone can perform currency day trading.

Currency day trading uses debt leverage to grant the traders access to much larger rewards or losses than his first stake, which establishes forex as a really attractive pastime to individuals trading from home. Paid day traders can operate from home or they can work for big establishments like investment banks, the deviation being the sum of research and resources available to them.

Being a winner in currency day trading commonly means having invested time becoming an expert on particular specific currency couples, which takes a lot of time to master.This reinforces the sound fact that the traders who consistently make money in foreign exchange are those with experience as they can select the easiest deals to enter and exit with perfect timing using their knowledge.

The foundation of currency day trading is rooted in sets of analysis which prescribe how and when a investor will commit his dealings in a currency with the design of getting a profit in the twenty-four hour period. As you can imagine each trader will expend a lot of time producing their private currency day trading systems which will automate a detailed amount of the process for them. These are based upon either the fundamental principles method which uses up-to-date intelligence from around the earth or the technical analysis method which is dependent upon charts.

The most recent add-on to these systems have been the release of currency day trading systems of rules that claim to run a foreign exchange trading business completely autonomously. The foundation of this is that somebody has programed into the software all the knowledge they have acquired about chart signs and when to trade. Many consider that this is a successful method as the computer faces none of the humanlike failings such as the mental needs to ride a profit or trying to trade out of a loss.

But i would always urge to tread warily with claims of a large nature in the forex field as there is unlikely to be any currency day trading software out there that will make profit consistently for buyers, as the maker would most likely never share such a system with the rest of the world.

When currency day trading you should ensure that you read up on all the risks involved in it. The most likely thing to happen when you are starting is that you will have losses but these that are all part of the learning process and you'll need to accept that experience is going to be the main factor for achieving success. - 23309

About the Author:

To make certain you get the best lowdown then try to read up as much as you can on currency day trading and expand your lexicon with a currency trading course

Free Candlesticks Guide

By Ahmad Hassam

Candlesticks have become popular in the Western trading community especially the United States in the past decade. However, candlestick charting methods had been developed by Japanese rice traders hundreds of years back.

Internet made possible the availability of online trading to retail trading. The advent of internet has leveled the playing field for traders whether they trade stocks, futures, options, commodities, precious metals or currencies. In the last two decades there have been seismic changes in the way people used to trade. Access to the market is now only one mouse click away. Trade just by clicking your mouse!

Market information is now in most cases freely available online. Internet has made commission rates dramatically lower. The result is that a whole generation of new traders and investors want to try their luck beating the market.

Can you beat the market? It depends if you are using the right tools. I am a great fan of candlesticks charting and I have seen many traders both new and professionals becoming die hard fans of candlestick charting. Why? Because candlestick charting is the best tool available.

Why candlestick charting is superior to other forms of charting like the line charts, bar charts or point and figure charts? One of the best features of candlestick charting is its visual appeal and readability. You can glance at a candlestick chart and quickly gain an understanding of whats going on with the price action in the market.

You can easily spot opening and closing price of a security or currency on a candlestick chart. These price levels can be a very important area of support and resistance from day to day.

This information can be extremely useful for short term traders like day traders and swing traders. There are certain specific candlestick patterns that can help you identify when is the best time to buy, sell or wait on a trade or investment.

These candlestick patterns can be a real boon to your trading and you can combine them with other technical indicators for even more reliable results. Now in order to trade and invest effectively using candlestick charts you need to understand these candlestick patterns.

A trader needs to keep abreast of what is happening in the market. Many different types of candlestick patterns can tell you what may lie ahead in the market. Patterns appear on the candlestick charts as simple, single stick occurrences or complex multi stick formations.

Entry and exit are the two most important things in any trade. You may use the information provided by candlestick patterns to decide when to get into a trade, when to get out of a trade or even when to hang unto a trade you are already in. This information can be highly valuable in knowing that the prevailing trend might reverse or continue.

This is the best candlestick guide in the market and you dont need to waste your money on buying a guide because this candlestick guide is a complementary gift for you from the Options University. Download your 82 page candlestick guide here complete with strategy flash cards all free. - 23309

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. Try These 1500 Pips A Day Forex Signals From Heaven. Download Your Free 82 Page PDF Candlestick Guide!

Vital Forex Trading Tips

By Bart Icles

Forex trading or commonly called FX is the business of trading of the world's different currencies and to gain a profit from it. The transaction involved a trader or investor buying one or several currencies and then selling or exchanging it for another currency that it is paired to. Because there are so many currencies floating around the world, the opportunity to make a profit is very real and excellent. It is therefore important to learn how to trade currencies in order to win in Forex trading.

In recent years, traders or interested investors who wanted to get into Forex trading were required to purchase highly priced Forex courses, go to far flung places to attend expensive seminars and buy costly software programs to help them in the trading process. It has changed dramatically now, and that change has benefited mostly the individual investor. Practically anyone now can learn how to trade Forex right in the comforts of their abodes and at any time most convenient for them without having to fork out a large sum of money for often unproductive and ineffective seminars and lengthy and cumbersome courses.

Resources of this nature can now be easily access online where the aspiring trader can learn the basic fundamental principles of Forex trading and up to the most advanced and complex ones. The great thing about the Internet and the generosity of some experienced Forex traders is that most of this information is offered for free.

Some Forex websites often give free Forex tips, and some even a whole Forex trading courses. These sites are very visible and popular to those interested and engaged in Forex trading of which are owned and supervised by many experienced and veteran Forex traders who wish to impart their acquired knowledge, techniques and principles on how to do successful Forex trading. Their trading experiences and insights regarding how to trade the market with using many of the tried and tested Forex trading techniques to use in their trading. They may even give free online seminars and workshops which allow anyone to have a first hand look at how to trade the more popularly patronized currency markets and thus have the advantage of learning from the masters as they do live Forex trading.

To get you started at online Forex trading, you only need to have a computer, an Internet connection and a Forex software program that is able to provide you will all the real-time data and other vital information you need to know regarding the market. The cost for such needed software programs will cost you anywhere from a few hundred to a thousand dollars or so.

To get more of Forex trading tips, just follow the link underneath. - 23309

About the Author:

Come learn how to use forex charting software properly. Their are several forex platforms to choose from but we recommend going with a free metatrader platform.

What Are Home Owners Rights during Foreclosure

By Doc Schmyz

Home foreclosure is one of the greatest fears of families due to debt. Even though this is true we often take our bills for granted in favor of our credit cards. Before we know it bills have easily stacked up and we end up not knowing who to pay first to stop the calls, and the current economy is not making this situation any easier.

Even though your house is being foreclosed there are still legal procedures to follow. Your lender can't just kick you out of the house. There are laws that protect homeowners from these situations. Here are some of the important facts you need to know when facing a foreclosure.

If I fail to pay my mortgage can I get kicked out of my house?

Simply put: No. The mortgage lender/bank can only kick you out of the house with a court order. Before they can do that they also have to follow a set of legal procedures.

How long does the foreclosure take before they take my house?

Depending on the state and county the house is in, it can take as long as 6 months. In some cases the lender/bank may push for a faster foreclosure however, this is only when they have a new buyer in mind normally.

After the foreclosure process do I have to get out of the house?

No you don't have to. After the foreclosure auction ends the ownership will be transferred from you to the highest bidder. You will become a tenant of the house. The new owner must also follow legal procedures before he or she can evict you out of the house.

In some cases you can become just a "renter" to the new owner. (this is dependent on the new owner of course)

What happens when I get evicted?

The new owner of the house may send you a notice to leave the premises. The notice usually gives you 72 hours. If you fail to follow the notice the new owner must present his case to the court before a judge to get an order for you to be evicted. The judge will be the one to decide if you should be evicted or grant you more time. If you fail to follow the court order the new owner may procure an execution of the eviction order.

The sheriff will give you a notice of the execution and give you 48 hours to pack and leave. If you fail to follow the notice this is the time when the sheriff can physically move you out of the premises. - 23309

About the Author:

Doc Schmyz has invested all over the US and Canada. His website shares Real estate investing information for all over the US. Find real estate information by state