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What is Margin Call?

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What is Margin Call?

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It is a demand need for additional funds required by the clients to increase their margin level of their deposits in case of a sudden adverse change in the international market price. If the current condition of the trader’s account in view of the open positions becomes less than the necessary margin needed for maintenance of the trader’s positions in the market, the dealer has the right to close all or some positions of the trader. This condition also refers to Margin Call. Usually for the open position in 100 000 USD Margin Call comes, if the current condition of the account of the trader makes less than 50 USD, i.e. less than 5 % from the mortgage of 1000 USD.

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