Sentences with phrase «margin call trade»

Should your equity fall below the minimum amount, Xtrade will automatically execute a Margin Call trade and close any open positions until your account equity exceeds the Maintenance Margin level requirement.

Not exact matches

Futures industry participants, including major banks that clear securities transactions, have warned about the risks to the system if the bitcoin price collapses and people trading bitcoin futures get hit with margin calls.
With share prices now falling again, investors may be forced to unwind some of these so - called margin trades to repay what they borrowed, prompting further pain in the markets.
But as a precautionary measure, margin trading accounts are set to automatically liquidate in order to make up the money borrowed (i.e. sell all ether as quickly as possible) if losses exceeded a certain amount, a process called «margin calling
This is called margin and is what allows you to leverage your capital and control larger amounts of the commodity you're trading.
Margin accounts are required to cover steep losses on a futures trade, an occurrence that's known on Wall Street as a marginMargin accounts are required to cover steep losses on a futures trade, an occurrence that's known on Wall Street as a marginmargin call.
I forgot to mention that some investors (let me call them speculators) may decide to borrow money for margin trading with the hold to sell at profits.
After years of losing trades on the margins and in the details, with Doc Rivers calling the shots, the Clippers covered a lot of bases with this deal.
That would maintain trade unionist involvement with an equal weighting (rather than half the weighting as in the recent electoral college) and avoid what Sunder Katwala calls a «legitimacy question» (the possibility that different candidates would win different sections of an electoral college) because Ed would simply have won by a much larger margin.
By Sean O'Connell Hollywoodnews.com: «Margin Call,» a new thriller from director J.C. Chandor, has traces of John Grisham's DNA yet benefits from a ripped - from - the - headlines narrative that trades in recession talk, debt ceilings, credit scandals and more.
By trading on margin (sometimes also referred to as «leveraging» or «gearing») in your futures account, you acknowledge and agree that TradeStation may, in its sole discretion, and without prior notice to you, and at any time, impose a margin call and liquidate your account, in whole or part, to meet such margin call and otherwise satisfy or offset any debit item or debit balance, or decrease or eliminate leveraging, in your account.
The system ensures that trades will be supported by current equity in the account and also automatically liquidates under - margined positions without making margin calls.
The broker offers a tool called SPAN Calculator where users can calculate the margin requirements for option writing / shorting or for multi-leg F&O strategies while trading equity, F&O, commodity and currency.
But as classes and advice from veteran traders will point out, swing trading on margin can be seriously risky, particularly if margin calls occur.
This means that if you place a trade with a small amount of available usable margin under the MT4 account, there is a risk that the execution of the orders could trigger immediate margin call right after the execution as the commission charges can result in insufficient margin to maintain your open positions.
(Learn about the margin call in our Margin Trading Tutomargin call in our Margin Trading TutoMargin Trading Tutorial.)
Trading in derivatives is also cost - effective, as for a low margin, you get exposure to higher investments, and accordingly stand to benefit in case of making the right tradinTrading in derivatives is also cost - effective, as for a low margin, you get exposure to higher investments, and accordingly stand to benefit in case of making the right tradingtrading call.
Being labelled as a day trader or not most likely did not have anything to do with that margin call - they're normally issued when one or more of your leveraged trades tank and you don't have enough money in the account to cover the shortfall.
When the trade went against Tom, the trade didn't have room to draw down, and the us - able margin quickly evaporated, pushing him close to a margin call.
In addition, E * TRADE Securities can force the sale of any securities in your account without contacting you if your equity falls below required levels, and you are not entitled to an extension of time in the event of a margin call.
If you are trading forex you'll also be in touch with trading on margin and other functions — I would call it «freaky» stuff for no professional traders.
So, the borrower, first of all, tries to avoid getting a margin call by trading efficiently, and in unavoidable circumstances of having received a margin call, the debt must be paid as soon as possible to avoid further damage.
Margin Call may be a telephone call, like in olden days, or the broker may just square off the trade to reduce the losses which leave the trader with more loss than anticipated as he did not get a chance to cover up for his losCall may be a telephone call, like in olden days, or the broker may just square off the trade to reduce the losses which leave the trader with more loss than anticipated as he did not get a chance to cover up for his loscall, like in olden days, or the broker may just square off the trade to reduce the losses which leave the trader with more loss than anticipated as he did not get a chance to cover up for his losses.
At this point, a margin call is triggered to the trader by the broker and the trader must provide additional cash or securities worth 1 % of the trade = $ 960 so that the margin account balance is able to reach back to the minimum margin requirement.
If the equity in your IRA falls below $ 25,000, a day trade minimum equity call will be issued which will limit you to closing transactions only (sell orders) in the margin account type.
If a trader receives a margin call, it means that the trader was unable to manage his trade properly and ended up in huge losses.
Tagged With buying call options, call option, call options, call options explained, commodity option trading, Commodity Options Trading, corn call option, Corn call options, corn margins, corn option prices, futures options, futures options trading, how call options work, how do call options work, options, options explained, options on commodity futures, options on commodity futures contracts, options on futures, strike price, trading commodity option, trading commodity options, trading futures options, what are call options, what is a calltrading, Commodity Options Trading, corn call option, Corn call options, corn margins, corn option prices, futures options, futures options trading, how call options work, how do call options work, options, options explained, options on commodity futures, options on commodity futures contracts, options on futures, strike price, trading commodity option, trading commodity options, trading futures options, what are call options, what is a callTrading, corn call option, Corn call options, corn margins, corn option prices, futures options, futures options trading, how call options work, how do call options work, options, options explained, options on commodity futures, options on commodity futures contracts, options on futures, strike price, trading commodity option, trading commodity options, trading futures options, what are call options, what is a calltrading, how call options work, how do call options work, options, options explained, options on commodity futures, options on commodity futures contracts, options on futures, strike price, trading commodity option, trading commodity options, trading futures options, what are call options, what is a calltrading commodity option, trading commodity options, trading futures options, what are call options, what is a calltrading commodity options, trading futures options, what are call options, what is a calltrading futures options, what are call options, what is a call option
When a margin call occurs, trades will be closed one by one until «Free Margin» is greater thanmargin call occurs, trades will be closed one by one until «Free Margin» is greater thanMargin» is greater than zero.
This type of margin money is called the initial margin money, and minimum margin money is the fixed minimum amount that has to stay in the trader's margin account throughout the trade over and above the difference between the value of the securities and the loan.
If you did get margin called and your trade exited at the margin call price, this is how your account would look like:
Even with this trade I still have more than a $ 20,000 cushion before I go on margin if every naked put was assigned and no covered calls were.
I am amazed that the NASDAQ and NYSE are invalidating those trades after the fact, but you can bet that the little guys who had their shares stolen on margin calls aren't getting a mulligan from the brokerages.
When positions have been over-leveraged or trading losses are incurred to the point that insufficient equity exists to maintain current open positions and the account's usable margin falls below zero, a margin call will result and all open positions will be closed out (liquidated).
If you engage in margin trading and the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice, in order to maintain your position.
I don't do any margin trading, but to answer Cody's concern above, in most cases, you have to have a margin account to use option strategies such as covered calls.
The day after the call, I got on the phone to E * Trade and admitted that I'd had a margin call, told them that it was no problem paying it (and I'd already transferred the funds), but that I didn't understand what had put me into a margin call situation.
For investors who trade on margin accounts, the average balance may be used to determine margin requirements, or any margin calls that the brokerage makes.
This fraction of what it costs to open a trade, that you personally invest, is called margin.
I recently got my first margin call from E * Trade for about $ 3K.
If you purchase calls, you have the benefit of low initial investment as you do when you trade on margin.
Assuming you bought all 80 lots at the same price, a Margin Call will trigger if your trade moves 25 pips against you.
This is called margin trading.
If the securities in your account decline in value, so does the value of the collateral supporting your loan, and as a result, Cobra Trading can take action such as issue a margin call and / or sell securities in your account in order to maintain the required equity in the account.
Lack of discipline, cowboy trading, not following the game plan, revenge trading... These are all common reasons as to how traders end up seeing the dreaded margin call.
As long as you're using a responsible trade size, and not allowing too many open trades at once, you shouldn't have to worry about margin calls with either of these methods.
It is recommended that an investor has significant financial resources available prior to trading on margin in case the unexpected happens and the stock decreases requiring a margin call.
After I got margin call in trading forex, my hubby told me to put $ 20,000 into our trading account even though I did not feel safe about it, we lost that $ 20,000 too.
I trade es and now down $ 50,000 in last 1.5 years because of the margin calls.
The regulator lists several main risks associates with CFD trading — the complexity of performance calculation, speculation on credit, lack of transparency in the calculation of underlyings where there are price gaps, no limitation on the risk of loss through the margin call procedure, and no limitation of the risk of loss by stop - loss orders, among others.
They email you in the morning if they're concerned about a potential margin call, so you have time to trade financial securities.
a b c d e f g h i j k l m n o p q r s t u v w x y z