Margin call pain refers to the situation where a trader's account falls below the required margin level, triggering the broker to close open positions to prevent further losses. It can occur when trades move against the trader, resulting in significant losses. Margin call pain can be emotionally and financially distressing, as it can lead to substantial account depletion and even account closure. To avoid margin call pain, traders should implement effective risk management strategies, such as setting stop-loss orders, using appropriate leverage, and maintaining sufficient account equity. It is crucial to carefully monitor positions, employ disciplined trading practices, and avoid excessive risk-taking. By managing risk diligently, traders can mitigate the risk of margin call pain and preserve their trading capital.
