Forex brokers allow traders to trade for 10 times the amount of deposited funds, but the broker knows howtocopyforextrading the trader never loses more than the actual forextradingsignalvestment Margin is the guarantee that Forex best forex copy trading means that the trader must have a certain amount of real money in their account as a guarantee against possible losses In other words, margin protects traders from losing virtual money (money they do not actually Margin ensures that trading positions are created, while traders must have enough real money in their accounts to cover possible losses. Margin requirements vary from broker to broker, depending on the amount of cashback forex offered Example: Leverage - Margin table shows that with 20:1 leverage, for each open position The trader must have 5% of the real money in the account, i.e. $10,000 trade requires $500 margin ($10,000 * 5% = $500) Residual margin, free margin, available margin - these are synonyms used by different Forex brokers and all refer to your trading margin margin margin: the trader cannot create trading positions that exceed the available margin, if the available margin dries up completely, it will not be possible to keep the original position running if the trader runs out of all available margin, he will not be able to create new trades in and should carefully monitor the currently created losing trading positions if losses accumulate further, there is an immediate risk of receiving a margin call available margin is zero maintenance margin, required margin Occupation margin - these are also synonymous and all refer to funds in use that are currently locked because the trade is open In other words, a margin call occurs when a loss-making traders account equity (balance plus floating profit/loss) equals or just exceeds the occupancy margin Account equity <=occupancy A margin call simply means that all or some of the open trades will be closed, thus preventing losses from exceeding the true account balance Traders never want to be notified of a margin call and close trades when they dont want to This is why traders try to monitor their account indicators when trading When a margin call is no longer avoidable, traders may try to close trades by injecting funds into the account, closing some of the losing trades, or closing the account with a margin call. In this way, the margin requirement will be reduced, but in different cases, this is only a temporary solution to the problem that must be solved and the losing trades must be monitored in time. Lets look at the trading conditions offered by a Forex broker: If a trader uses a maximum leverage of 200:1, the margin ratio is only 0.5% As a smart trader with a solid knowledge of money management, he will not make large trades that are not suitable for him and therefore will not be harmed by leverage, and by avoiding the worry of receiving margin calls, he will benefit from low margin requirements. Know how to deal with leverage and margin in forex trading: use leverage according to your choice and preference, do not overuse leverage, but trade at the size you think is appropriate for your account size and risk appetite Reduce margin by increasing leverage Another important point to keep in mind: if you ever let a trade run without setting a stop loss, use the lowest leverage possible, or The risk of losing most, if not all, of your money by not using leverage without a stop loss increases dramatically. The consequences of some major economic events can cause prices in the Forex market to move by up to 500 basis points or more in a very short period of time. Prepare for margin calls