Commodity Trading Margin Call
MT4 Margin Call Calculation in Commodity Trading
A commodity margin call is when a commodity trader's account free commodity margin goes below the required commodity trading margin level that is set by the broker. This means that because the free commodity trading margin in the trader's account has gone below required commodity trading margin level then the trader gets a commodity trading margin call & some of the open trades in commodity trader's are closed by the broker until this commodity margin level goes back up to above required commodity trading margin level.
Some of the open trades might be closed out or all of the open trades might be closed-out if this commodity trading margin call is automatically executed by commodities trading broker.
What is Commodities Margin Requirement Level?
Now if Your Commodity Trading Leverage is 100:1
When trading if you have $1,000 & use leverage of 100:1 & buy 1 standard commodity lot for $100,000 your commodity trading margin on this commodity trade is the $1000 dollars in your commodities trading account, this is the money that you will lose is your open commodity trade goes against you the other $99,000 that is borrowed, the broker will close out the open trades automatically using a Commodity Margin Call once your $1,000 has been taken by commodities market.
But this is if your commodity broker has set 0% Commodities Trading Margin Requirement before closing your commodities trades automatically using this Commodity Trading Margin Call.
What is 20% Commodities Trading Margin Requirement Level?
For 20% commodity margin requirement before closing your commodities trades automatically using a Commodity Trading Margin Call, then your commodities trades will be closed once your balance gets to $200 - at $200 you'll get a commodity trading margin call.
What is 50% Commodities Trading Margin Requirement Level?
For 50% requirement of this level before closing your commodities trades automatically using a commodity trading margin call, then your trades will be closed once your balance gets to $500 - at $500 you'll get a commodity trading margin call.
What is 100% Commodities Trading Margin Requirement Level?
If the broker sets 100% commodity trading margin requirement of this level before closing your open trades automatically using a Commodity Trading Margin Call - at $1,000 you will get a commodity trading margin call, then your commodities trades will be closed once your balance gets to $1,000: Meaning the commodities trades will close-out as soon as you execute a 1 standard commodity lot on this commodity account because even if you pay a 1 pips spreads your commodity account balance will get to $990 and the needed commodity trading margin requirement percentage is 100% that is 1,000 dollars, therefore your commodity orders will get closed immediately using a Commodity Trading Margin Call once your commodity margin requirement falls below 100%.
Most commodity brokers do not set 100% commodity margin requirement, but there are those commodity brokers that set 100% commodity trading margin aren't suitable for you at all, even those who set 50% commodity margin requirement are still not suitable. Choose those set 20% commodity margin requirements, in fact, those commodities brokers which set their margin requirement at 20% Commodities Margin Requirement are the best because the likely hood they close-out your trade using a Commodity Trading Margin Call is reduced as shown in examples above.
Safe Margin Level Commodity Trading - Free Commodities Trading Margin Commodity Trading and Used Commodities Trading Margin Commodity Trading - Commodity Trading Margin Level Percent Calculation Explained
