These margin calls refer to the time when the equity in your account falls beyond the scope of capacity , which is equal to the money required for opening an transaction). Your Forex broker will be forced to liquidate some or all of your open positions, to prevent your account reaches a negative balance.
The purpose of margin trading is that this margin should behave as a deposit to hold the largest notional placement. These transactions have granted to traders positions higher than the value of the account, of course this takes a big risk.
The high degree of leverage can generate many benefits in your favor, but may turn against them at any time. At the time the account equity is insufficient to hold open positions in Forex (current), there is a margin call and these investments must be liquidated.
Margin calls are made electronically and then show an example so you can better understand the concept.
Imagine that you own 1,000 U.S. $ in a Forex mini account where each pip is worth U.S. $ 1 per lot and its margin is 5%, means that for each mini lot you open must be free and available in your account $ 50.00. Yes lots open 2 mini $ 100, and so on.
If you will open your margin required six lots will be U.S. $ 300, must have this $ 300 as a minimum at the time that you are losing or your broker otherwise it'll be close all positions at that time be open.
When making a margin call that there is capital to withstand market fluctuations will be reduced, which may cause you to end up with nothing or loss of funds.
This issue is very important and delicate, so you as a market foreign exchange you should dig deeper to learn to avoid losses and recognize, as a result you will develop better in the marketplace.
