(ASIC) 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:

  1. 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;
  2. If the funds available in an account only cover 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
  3. If the funds available in an account only cover 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%.