About Day Trading: Margin and the Dreaded Margin Call
 | from Adam Milton
This week's day trading newsletter includes a discussion about margin calls, which is something that most traders have heard of, but don't really understand: - the definition of margin, and why it varies from one market to another, - the definition of a margin call, and why professional traders should never receive one, - a question that I received about trading software, - and the weekly economic calendar with volatility expectations.
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In the Spotlight |
What is Margin?
Margin is a minimum amount of cash and/or securites that must be held in a trading account in order to trade a particular market. For example, in order to trade the DAX futures market, a trader must have at least ... find out more
| | What is a Margin Call?
A margin call is when your day trading brokerage contacts you to inform you that the balance of your trading account has dropped below the margin requirements for one of your active trades. For example, if you have an active trade on the ZG (Gold) futures market, and your trading account goes below ... find out more
| Trading Software Question
I recently received the following question about trading software and order types: Why do you use Bracket Trader vs stops and limits? ... read my answer
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