My order SL went through and the funds are now depleted

To Erwin Tembesi..

SL is the loss limit. When you open a position and set an SL, and then your order touches the SL, you will experience a loss, the value of which is equal to the SL. Your balance will decrease.

If every time your order touches the SL, your balance will continue to decrease/thin out. Even if there are still open orders. As the balance gets thinner, the Equity and Margin level gets thinner, it cannot withstand floating. Your order will be closed, then MC occurs.

My advice is not to open too many positions, change the trading method you have been doing.

Thanks.

@ Erwin tembesi:

You can re-check the margin call level percentage on InstaForex.
Margin call level = (Equity / Total Margin) x 100%
Margin call level is the level at which you will experience a margin call. The margin call level (in percent) is a comparison between equity and total margin.

Usually brokers set the margin call level to 100% (each broker can be different).

For example, you are trading on a broker that applies a 100% margin call level and you still have USD 5,000 with several open trading positions that are in total loss (excluding margin), with a total margin of USD 500.
If your total loss has reached USD 4,500 then you will experience a margin call, because your margin call level = ((USD 5,000-USD 4,500) / USD 500 ) x 100% = 100%.

Especially if you had open positions on Friday, April 21st, indeed a gap occurred on the opening of the market on Monday morning WIB (April 24th) on almost all major currency pairs and gold.

This gap is the same as slippage, and is quite significant, so your stop loss will be executed at the level when the gap occurred.

For example, you have a sell EUR/USD open position on April 21st as in the image below, your SL will be executed at level A on the morning of April 24th when the gap occurs (the gap is around 200 pips). If there is a sell USD/JPY open position, SL will be executed at level B, and if there is a buy XAU/USD open position, SL will be executed at level C.



So if your equity is not strong enough to withstand the size of the slippage due to the gap, then you will experience a margin call.

What is a Margin Call ???

To Gouw Ricky Saputra..

Margin Call (MC) is a situation where open positions can no longer be continued because cash equity has thinned, which can result in total loss and requires an injection (adding capital) before a margin call is triggered.

If the money in your account falls below the required margin (usable margin), the broker will close some or all positions forcibly.

Thanks.

Back then I was trading in a sell position at 1.275. Because gold rose significantly to a price of 1420, my equity and new balance were depleted. What if, after a few weeks, the price of gold falls again to the position I wanted? Will my equity and new balance be restored?

To Oding Budiman,

Then it means you have been Stop Out, sir. If you open a position, and the price turns out to move against the position you opened, then of course you will experience a loss. The loss will get bigger and endanger your trading account if you don't determine the risk (Stop Loss) on the open position. If the loss has swelled and the capital you have is no longer able to withstand the existing loss, then the system will automatically close the losing position. This condition is called Stop Out.

Looking at the chronology you provided, it could be that you traded without using a Stop Loss or traded with a very large size. If you trade without using a Stop Loss, then you are not limiting the risk of loss. So, when the price moves far against your position, and the balance you have is not enough to withstand all the existing losses, then the position will be automatically closed by the system. In other words, the balance you have is exhausted because it is no longer able to withstand the existing losses.

Once a loss has occurred (no matter how large), the deducted balance cannot be returned. Therefore, because funds due to losses cannot be returned, it is best to trade by limiting losses using a Stop Loss.

Hopefully this can help.