What are the brokers without margin call?
Especially after events like the SNB debacle and the subsequent reaction in the CHF, some brokers have reacted to this situation and excluded the margin call.
These are exactly the events when you have suffered losses due to too high risk, which exceed their account deposit and due to the non-existent margin call are not required to pay the different.Previously, this also worked with the aforementioned margin call and the customer was required to inject capital in case of losses. Brokers without margin calls include:
Conclusion on the subject of brokers without margin calls
Even if the trade with foreign exchange and exnessbroker.net is afflicted with a high risk, you should do your utmost as a trader to limit the risk of loss at least to your invested capital. For this purpose, however, it is not absolutely necessary to look for a broker without margin call obligation.Even in quotes "normal" brokers usually protect their customers (and themselves) via a margin call.More important is to adjust its position sizes to the risk and not to overleverage its account.Who moves in relation to its account size much too large positions, of course, runs the risk of unexpectedly violent price movements against the trader into the red. Pretty much all brokers work with a margin call, if temporary losses lead to the fact that the security deposit is no longer sufficient. If there is enough margin, the broker has enough time to close the position before a negative account balance occurs.The great advantage of not having to make margin calls is that you can determine for yourself, through your capital investment, the maximum amount of your possible losses. If, on the other hand, you have to inject additional capital, this can become a bottomless pit.
At this point there is a serious difference between a broker with and a broker without margin call. With the broker without margin call, a so-called margin call would be carried out in time. This is an alarm that informs the trader that his margin is no longer sufficient. The trader can react to this "wake-up call" by adding additional margin, i.e. by investing additional capital. However, he does not have to do this, it is only an option. If the customer does not react to the margin call, the broker closes the position automatically. This leads to the fact that just no larger losses than the invested capital can arise.
Different types of margin call
However, it is different with a broker with margin call. This would normally not inform the customer that the security deposit is no longer sufficient due to the interim losses, but the customer would have to immediately inject the corresponding capital. This is used to cover the losses incurred with respect to the collateral deposit. If, for example, the U.S. dollar were to lose ten percent of its value, the customer would have to inject the capital required as collateral to cover the losses. This margin call can go so far that the trader can lose not only his entire stake, but even his entire assets. The only option then is to sell the position - at a significant loss.