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 risk management system allows.
You can always check your Margin Utilization level on your EXANTE account using:
- Client’s Area 'Account Summary' for your account
- EXANTE trading platform from Web, desktop and mobile versions for both Live and Demo accounts
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. The client will be informed about a Margin Call by an email in his registered email address.
It is the client’s responsibility to keep enough funds to fully cover margin requirements of open positions.
Margin call can be covered by:
- sending additional funds (cash or marginable securities)
- reducing position
In case you still want to hold open positions for a while providing an additional deposit, you would need to contact email@example.com providing the SWIFT confirmation of the transfer.
Same applies for a delayed reduction of open positions. In case you need additional time to close a position, contact firstname.lastname@example.org to receive a confirmation. Otherwise the open positions will be closed manually from the side of EXANTE with a fee of 90 EUR.