Before going to clear port first understand margin call. Because it is related to clear port. So, the margin call is the situation of the deposit money in the account. From which a person buys or sell in the forex market. So, if the deposit range of the account is lower than what is set by the forex broker. Then the person will get notified of the margin call state. If the margin call is made for the trade. Then, the person can either add fund in the account or close the trade. But if the person doesn’t do anything about it. And, leave the trade as it and doesn’t do anything about the deposit which is low or negative.

Then, the broker will not be confident about that person. When the deposit is low and collateral is exhausted. Then, the broker will close all the orders that are set by the user. And, then it will reach a certain point where the broker will close the account of that person. This thing is known as the clear port. In simple words Clear port is [ล้างพอร์ต คือ, which is the term in Thai] the condition in which the account has negative deposit condition.

How to stop from getting into the clear port position?

The best way to prevent a clear port is not to overtrade. Because sometimes it happens with a lot of people. That they do almost 10 to 15 trades in a day. Don’t do that try to do only 3 to 4 trade in a day. Also, the most important thing is the stop loss. Never do any trade without the stop loss. Otherwise, a person can lose all the money.

Research before putting money

Research is the most important thing in every trade. Follow up the news and articles about the stock. So, a person can know the stock very well. These things will eventually help in trading and making money.  

By Genaro Martin

Linda Martin: Linda, a renowned management consultant, offers strategies for leadership, team building, and performance management in her blog.