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How to Avoid Margin Calls

May 10th, 2016 No comments

 

Stock Trading Courses and How to Avoid Margin CallsAvoiding Margin Calls

 

How to avoid margin calls while trading will be a critically important lesson that a comprehensive stock trading course will teach you. After all and if you are like most stock traders, you will probably be using leverage to increase your ability to profit with your stock trading system. However and should the markets turn in an unexpected direction, you may find yourself facing a margin call from your broker.

 

Specifically, margin calls will occur when the amount of margin posted in a margin account falls below the account’s minimum margin requirement. When this occurs, you will need to increase the amount of margin that you have deposited in your margin account or you will need to close out your trading position by selling the stock in your account. And if you choose to do nothing, your broker can decide for you by liquidating the stock in your trading account. Hence, it is critically important that you take a stock trading course that covers how to trade on margin and how to avoid margin calls.

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