The terrible dream of any trader is Martin-Call. How not to face him?

Eugene, I recently in the market, but already heard that the terrible dream of any trader is Martin-Call. How not to face him?

Yes, indeed, the event is unpleasant. It is still obliged to their name when stock transactions were concluded by telephone. When the balance of the trader approached zero, a broker called him (Call — call) and asked to fill the lack of funds. That is, Martin-Call is the requirement of a broker about the introduction of additional funds. When it fails to fulfill, the broker will force the position.

To quickly get rich, bold traders often resort to marginal lending, take on the security of their assets at the broker cash or securities, but, as you know, loans must be given!

📝 For example: you have 2700 rubles. And you buy 10 shares of Gazprom at 270 rubles / AK. Are you sure that the shares will grow up, so take a break from the broker for another 5400 rubles (this is a loan, the key to which is your shares) and buy instead of 10 more 30 shares instead of 10!

Why is this broker? Broker takes percentage from you (the rate depends on the broker) for using it with cash or shares.

If the price of the action grows by 10 rubles, then instead of 100 rubles profit (10 shares x 10 rubles), you will receive 300 rubles (30x 10 rubles). Naturally, if the price moves down, then the losses are also more painted. At a certain point, with a sufficiently large price reduction, when not only your money is beginning to be under threat, but also borrowed money broker, Minin-Call arises.

In the example above, when the price of Gazprom shares is up to 180 rubles, you will lose all your money, as the loss will be (270-180) x 30 = 2700 rubles (in fact earlier, because of your funds will go to the Commission ).

Mad use of the loan is one of the few ways to lose in the stock market. Therefore, I advise you to be extremely neat, do not take a loan (both Long and shorts), evaluate the risks and invest only on your own funds, then Martin-Call will cost the party!

Always analyze the paper and buy and sell only in accordance with your strategy.

You have no strategy yet?