Don’t overtrade now as we should only take risk when we can afford to, now, getting a second margin call means that you should reconsider your strategy.
One reason I think we get so tempted to use higher leverage and in the process get closer to a margin call is, the lower interest rate on more leverage, what say
Perhaps, also I think it’s to do with thinking that we are invincible. Not like a superhero kind of way but we get overconfident. I never got a margin call but I remember when I got 11 straight winning trades in fxview in my first month of trading. I started trading bigger amounts, created many more trading accounts, even with interactive brokers and saxo bank and boy, did I fall hard? Came to my senses right on time and reworked on my risk management, and that included a much lower leverage of 5:1.
What’s the relation between more brokers and increased risk? I mean multiple positions can be opened even on one platform.
Many traders do so as a safety measure @Leo. If one runs amok then still all the trading capital won’t be history.
I think your broker is a bit harsh on the margin policy. I agree every broker is different but do checkout their policies.
First margin call at 70% is what brokers have as their policy, like with fxview. Then some even have it at 90%, pepperstone if I‘m not wrong. Any pepperstone users here?
There are many things which make a broker whole together different from one and another and margin policies is one such thing.