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 the client will be prevented from opening new positions, but will be able to keep the existing positions as long as the margin utilization is below 100%.
At EXANTE, when the utilization reaches 102%, an email is automatically sent to all client’s e-mail accounts with all the details on the necessary actions. Of course, the account manager is always CC'ed in such e-mails.
Should the margin utilization exceed 100%, the client will be in breach of margin requirements and EXANTE will have rights to decrease or fully liquidate the client’s open positions at any moment.
It is a client’s responsibility to keep enough funds to fully cover the margin requirements of open positions.