What is a margin call?
Please note that it is always a client’s responsibility to monitor their positions. We do not provide guaranteed stop-losses.
We operate an automated ‘margin call’ mechanism to mitigate the risk of an account falling into a negative balance. Generally, to manage this risk we take the following measures:
- If the margin required to maintain an open position(s) takes up 100% of the funds shown in an account, the account is regarded as being on margin call;
- If the funds available in an account only covers 80% or less of the margin requirements for open positions, the client will receive a visual message automatically on MT4 or MT5 asking them to consider taking appropriate action which can include depositing further funds or reducing exposure; and
- If the funds available in an account only covers 50% of the margin requirements for open positions, any open trades will be automatically closed in order of magnitude until the account’s margin level returns to over 50%.