The most common rookie mistake in Forex trading is over-leveraging. Many see margin as a shortcut to big profits, but professionals see it as controlled exposure.
Margin traps occur when traders open too many positions or trade sizes beyond their account’s comfort zone. When the market moves even slightly against them, the margin level drops, leading to forced liquidations.
To avoid this, use no more than 10–20% of your account margin at once. Maintain a large buffer of free margin for emergencies. Margin isn’t meant to be maxed out—it’s meant to keep you in the game longer.
Margin traps occur when traders open too many positions or trade sizes beyond their account’s comfort zone. When the market moves even slightly against them, the margin level drops, leading to forced liquidations.
To avoid this, use no more than 10–20% of your account margin at once. Maintain a large buffer of free margin for emergencies. Margin isn’t meant to be maxed out—it’s meant to keep you in the game longer.