What is Margin Call?
A margin call is not the kind of “call” you want to get! In the past, it was a phone call from your broker, but these days it is an email or alerts to let you know the available margin in your account is getting dangerously low.
A margin call happens when the account value falls below the broker's required minimum requirement. When this happens, the broker will require the trader to deposit additional funds into their account to balance the minimum maintenance margin. If you do not have enough funds in your account to cover a potential loss, your trade may be placed into a “Margin Call.”
Once the margin level of your account reaches below 100%, a margin call notification will be sent to inform you that your equity is no longer sufficient to hold your existing trades.
If you receive a margin call notification, you have two options:
- Close one or more of your open positions to reduce your initial margin, and/or
- Add more funds to your account to maintain the open position/s
While Axi does send margin call notifications once the margin level reaches below 100%, clients must not rely on notifications before taking action. Axi cannot and does not guarantee that margin calls will be received, or that sufficient time will be available to add funds and avoid losses.
It is the responsibility of the client, not Axi, to monitor margin requirements and ensure sufficient free equity is maintained to meet any potential adverse market movements. We will do our best to notify any client approaching a margin call position, but Axi is not responsible for preventing losses.
Margin stop-out levels
If your margin level falls below the Liquidation Level, or zero, (whichever is the greater), we will place a liquidation order for your open position(s).
Please be aware that if this level falls below 50% for CYSEC retail clients your positions will start to be liquidated or closed to maintain the required level. Our system will close out the largest losing position to bring you back above the 50% margin level.
For Professional Traders, the Liquidation Level is 20%.