Automatic stop loss and Margin call
Unlike the forex market, the margin call system is adopted to the exchange traded markets, like commodity futures. The broker claims to investors for the additional payment for the compensation of the current revaluation losses in order to maintain the present position outstanding. For example, if the revaluation losses exceed 50% of the margin requirement, the investors have to fill the deficit within some days the broker would call on, otherwise, his position would be made clear at the market price compulsorily.
The forex market is moving during 24 hours without rest. In addition, there is no price band limit to be set in the forex market. The automatic loss cut system is called as the last resort for individual investors to protect from the unexpected market risks.