Margin call is the term used to describe a situation when the value of an account (total deposits plus or minus any profits/losses) falls below margin requirements.
Margin call is initiated once Margin Utilization reaches 100%. In this situation, clients won’t be able to open new positions, yet they will still keep the existing positions as long as their margin utilization is below 100%.
Should the margin utilization exceed 100%, the client will be in breach of margin requirements and EXANTE will have the right to decrease or fully liquidate the client’s open positions at any moment. It is the client’s responsibility to keep enough funds to fully cover margin requirements of open positions.