Forex traders must manage their risk effectively and maintain sufficient account equity to avoid margin calls. A margin call occurs when a trader’s account balance falls below the broker’s required margin level, forcing them to deposit more funds or close positions. To prevent this, traders should first use proper leverage. While high leverage can amplify profits, it also increases the risk of significant losses. Sticking to lower leverage ratios, such as 10:1 or 5:1, reduces exposure. Second, traders must implement stop-loss orders on every trade to limit potential losses. This ensures positions are automatically closed before losses deplete the account. Third, maintaining a healthy margin level—ideally above 100%—helps buffer against market volatility. Regularly monitoring account equity and margin usage is crucial. Additionally, traders should avoid overloading their accounts with too many positions at once, as this increases margin requirements and risk. Diversifying trades and avoiding emotional decisions also contribute to better risk management. Lastly, staying informed about market news and events helps traders anticipate volatility and adjust positions accordingly. By following these strategies, forex traders can minimise the risk of margin calls and protect their capital.

To avoid margin calls, forex traders should adopt prudent risk management strategies. First, they must use proper leverage, as excessive leverage increases the risk of margin calls. A lower leverage ratio, such as 1:10 or 1:5, reduces exposure. Second, traders should maintain a sufficient margin by depositing extra funds to cushion against market volatility. Third, setting stop-loss orders helps limit losses and prevents account depletion. Fourth, monitoring trades and avoiding overexposure by diversifying positions is crucial. Fifth, traders should stay informed about market news and economic events that may trigger sudden price swings. Lastly, maintaining a disciplined trading plan and avoiding emotional decisions ensures long-term stability. By following these steps, traders can minimise the risk of margin calls and protect their capital effectively.