We know that foreign exchange investment forex broker rebate program traded on autorebateforex, foreign exchange forexrebatebest margin is also used to open and maintain the position of funds foreign exchange trading margin is through leverage to allow investors to use a small amount of money to operate a large amount of money investment, so as to obtain the corresponding leverage multiples of profits, similarly, when investors do the opposite direction, the funds will also be leveraged multiples of Accelerated loss is also the return is proportional to the risk when the investors margin can not maintain the amount of its transactions, the broker will notify investors of additional trading margin if the investor fails to call the margin in a timely manner and the transaction in a continuous loss, will be forexbrokerrebateprogram to close the position, which is what we usually understand the burst of the following we focus on foreign exchange trading on the cashback forex of positions and forced to close several situations First, the For a long position, it means selling a long currency; for a short position, it means buying a bearish currency, thus closing the position. This stop loss is also a closing of your position except that the stop loss is set by the trader himself to force the closing of the position Next, lets talk about the forced closing of positions, so what is forced closing? Forced closeout is actually a set of risk management system set by the foreign exchange broker in foreign exchange trading, usually refers to the broker will be held by the customers open position single mandatory closeout processing common situations are, when the investors trading margin is insufficient and not made up within the specified time, or when the customers position exceeds the prescribed limit, or when the customer violates the rules, the broker in order to prevent further expansion of risk We call the forced closing of positions in the foreign exchange market classification of forced closing 1. based on the margin ratio of forced closing here to say, foreign exchange trading, we like to say based on the margin ratio of forced closing for the burst, in fact, there is a difference between the two burst is originally intended to refer to the account loss to a negative net value of the state in the actual trading, the loss to a negative number of cases is not rare, investors usually put the account nearly lost all the money, to the inability to continue trading state is called a closed position and forced to close the position is due to the margin ratio triggers the dealer to set the strong closing conditions and lead to a single forced to close the position margin ratio = (net / used margin) * 100% of the dealers strong closing rules most of the current market strong closing rules margin ratio of 100%, but there are some brokers will set the value lower to improve the utilization of customers funds lower margin settings can give customers better capital utilization, but traders bear a higher margin risk, because when the market fluctuations and customer positions are heavy, forced to close out the position may lead to a negative account net value, therefore, the broker in order to avoid investors trading account into a negative number. Usually when the margin is below a certain percentage, the trader will be notified of additional trading margin 2. Violations, thus causing their own unnecessary losses above is this issue on foreign exchange trading and forced to close several cases of position, I hope it will help investors
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Please indicate the original link for reprinting： Foreign exchange trading will be forced by the broker to close several situations
Please indicate the original link for reprinting： Foreign exchange trading will be forced by the broker to close several situations