What is a margin call?
You will receive a margin call when your account is too low in funds and doesn't cover the minimum margin required to continue trading. This can be caused when one or more of the trades open in your account has decreased in value below a certain point, or due to fluctuations in asset prices.
In a margin call, how much time do I get to close my trades?
If your account equity drops below 50% of the reserved margin amount then positions will be automatically closed out in order to bring your account equity back to 100%. There is no time limit if your account is in a 100% margin call. This means if your TFA reaches zero you will be notified, however, there is no time limit for you to act.
50% Close out rule
You will receive an email notification if your account equity drops below 100% of the margin required to cover your open positions. As soon as your account equity drops to 50% of the minimum required margin, under the new rules, we will immediately reduce or close your positions until your account equity reaches 100% again.
- An open trade has a margin requirement of £500
- If the TFA (Trade Funds Available) falls to Zero, that is the 100% margin call.
- When TFA falls to -£250 or Equity value is reduced to £250, (50% of the £500 margin) your positions will automatically be closed until back above the 100% required margin again.