My experience of getting a Margin Call on forex trading


Hello everyone, today I will brief a story about my experience experiencing a margin call.

As we know the Margin call is the loss of all of our capital and the trading we have. Or more clearly the

Margin Call (MC) is a warning system if the trading account equity is not sufficient for the margin value needed to open a position (margin requirement). 


So, Margin Call is a brokerage facility that warns traders if the account's equity is being threatened by floating loss from the current trading position.

Then, the margin call is lost, and all of our capital is lost. Well, at the beginning of my trading, I also experienced a number of Margin calls, and if the total margin call I experienced was around 100 USD in some Margin Calls.

The number of margin calls can be said to be a bit (for you), but for me it is quite a large amount of money because I have not been able to earn/profit from forex.

Because this story has been a while so it reminded me very little, besides that I deleted the account that I told you about this.

In the beginning, I was interested in forex after I had had binary trading at OlympTrade (Read my previous story about: The first story I know about Forex is from Binary Option ads that tease me).

Because I was increasingly interested in forex then I made a small number of deposits, which is around 20 USD.

What I deposit is an account that I made at broker XM where the type of account is a micro account (1 lot: 1,000 USD) whereas if the account is standard we know (1 lot: 100,000 USD).

At that time I used the Meta trader 4 platform because when I first started many people said that Meta trader 4 is better than MT5.

Well, this was the story at that time after depositing it. I just gas with reckless and non-knowledge capital and underestimating forex.

Why do I underestimate forex? Because armed with Binary Option trading that sets a time limit for our loss/profit, while diforex said people (when I do not know) it can profit if we wait patiently.

So the point is there is no time limit in forex for example if we open a position if in a loss position we can leave it and wait until the profit then we close the position.

Whereas in Binary options once the time is determined we lose immediately. Well, with confidence capital, I finally trade forex.

At the beginning of the transaction, I can get blue-blue (profit) in every forex transaction, but I realize that some of these profits are very small and very far from the profit generated by binary options.

Then because I know the irregularities, I then raise the lot (not paying attention to equity) and open the position again and what happens?

Yes, I can make bigger profits. So at that time my balance could increase from the value of the deposit.

Then I trade another day again and the balance increases. I was very happy at that time, until there was an unfortunate incident where prices did not turn around at that time.

Chronologically like this when I get the first MC:

  • I open a position as usual without regard to equity. 
  • The order that I do immediately executes without installing Stop Loss or Take Profit. (at that time I didn't know the feature haha).
  • The direction of the market is not in accordance with what I predict so that the loss is more and more. 
  • Looking at loss -5 USD starts to worry and wait.
  • When I have -10 USD I hope once the market changes direction, but the opposite happens. 
  • When it was -15 USD, I was resigned, finally I just thought "Ah, all the capital is gone, hopefully I can reverse the direction). 
  • Finally, and there was a Margin Call where my balance was written minus. 

Well, when it happened the MC I was increasingly curious about forex (I was not familiar with what the MC was at that time) I was surprised the problem is how come all the capital I used was lost even though I used the lot less than 20 lots.

Here I am, I don't know yet, I think 1 lot is equal to 1 USD, so it's the same as in binary options if we bet 1 USD then if the loss is only 1 USD, if I bet 5 USD if the loss is only 5 USD.

While confused myself, I finally studied and learned about forex then knew what the lot was different and diforex had a very different system compared to Binary Options which only guessed SELL / BUY.

Because I was the first new MC and began to realize if I still had a lot of shortcomings for forex trading I then vacuumed a few months

After I knew a little about some forex terms and a little strategy then I made a small deposit again (only 5 USD or 10 USD) where intention from the deposit not to look for big profits (although hoping too) but most importantly for training rather than using a demo account that does not make tense (can not hone mentally if the demo is done haha).

After several times the deposit turns out what happened?

Everything was finally MC as in the first story, initially it was profit but because of my lust, I beat it with a big lot.

But not only that which made me MC many times, besides lust and greed that was hard to control, I also did not consistently put Stop Loss (SL).

Sometimes when I have installed stop-loss in this position when the graph approaches I edit the Stop-loss is getting farther away so that what happens is the same as the one without using Stop Loss (SL) haha.

After several times my MC then vacuumed a few more months. Then I learned again and comeback again after learning I filled the 10 USD deposit again with the micro account and what happened?

Yes, I can profit, but then the MC again. Because many times my MC then took the initiative to replace the account where at that time.

I already understood the types of forex accounts, then I changed the account from the previous 'micro account' in XM, to Ultra Low now (where the low spread account was formerly called XM Zero).

After changing my account to Ultra Low, I also chose for my own platform to change from Meta trader 4 to Meta trader 5 (sometimes also opened via webtrader).

Now this Ultralow account I deposit is bigger than usual where I deposit around 50-60 USD when deposit. It was assumed that it was the first time to open the position, unfortunately the loss was hahaha, but up to several times the trading was finally able to develop the capital up to around 25% (although it was relatively small). 

Well, there was a bad event where I started to try trading other pairs (not currencies) like gold, BTC, index, and commodities.

One time I was determined to open the position on OIL-WTI trade because I saw many of the big oil trading profits, finally I opened the position and what happened?

I wrongly predicted that I would end up losing a lot of trading. From several times trading on OIL, I get the most disappointing and the worst results at the moment (compared to the currency pair) where from the previous 80 USD I traced several times in the OIL the result was 40 USD (half capital loss).

But until now I was very curious about trading OIL here for some reason the news, fundamentals and technicalities in OIL seemed useless (or just my opinion).

Well, the balance of 40 USD resulting from the loss at the OIL trading I determined again to trade OIL again, and this time I trade in OIL with desperate capital.

Why is it reckless? Because I only see the news, which is said, OIL will rise, so I just open BUY and deliberately leave it without Stop Loss. Then what happened? Wait for my next posting...Bye.

UPDATEThe continuing from this story, you can read it on the page my story gets a Margin Call (MC) again, again, and again. Thanks.