In trading, you'll receive a margin call when the amount of equity you hold in your margin account becomes too low to support your trades.
It serves as a key risk management tool to prevent your losses from becoming unmanageable. If you're a retail client, you won't be able to lose more than the amount deposited into your account with us due to negative balance protection rules. Below is an outline of how a margin call works:
The first margin call is triggered when the ratio between your equity and required margin falls to 100% or below.
If your equity drops below 100% of the required margin, you will no longer be able to open new trades or place orders.
If your equity-to-margin ratio drops to 75% or below, you will receive the second margin call notification.
If your equity falls to 50% or below the required margin, the automatic margin close-out process is triggered. This is a regulatory requirement and cannot be changed or disabled for retail clients. The process is as follows:
- All pending orders are canceled following FIFO logic (earliest created orders are canceled first): until equity/margin ratio is 75%.
- Open positions are sorted by creation timestamp (oldest first).
- Before closing each position, the final result is calculated to determine how much of the position needs to be closed.
- Positions on markets which are closed in the moment of close-out will be skipped until market is open
- A position may be partially closed if that is sufficient to restore the ratio to 75%.
You are notified by email when you are on a margin call, but please note that market conditions can change rapidly and there is no guarantee you will have time to act before a close-out occurs.