Wednesday, August 22, 2012

Margin Call -o- meter on Zulutrade

I have seen many followers on Zulutrade to risk they capital. They simply choose to follow too many signal providers and do not realize that if some of those providers get big drawdown, they can receive a margin call from their broker.

What is Margin Call?

Definition of Margin Call says that it is a very bad situation, when the floating loss in your account is threatening the $ amount reserved by your broker, to keep your positions opened (also called as necessary margin).
Note that if you get a margin call, your broker will close all your positions. So even if your signal provider might close those positions later with profit, you end up with loss.

Many people lost huge amounts of money by following too many signal providers and receiving a margin call.

But you can simply avoid this situation by using Zulutrade´s Margin Call -o- meter.

You can find this tool in My Account > Settings.

Simply keep your Marfin Call -o- meter level below 80% and you will be safe.

See the screenshot below to see how it looks like.