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 Utilisation 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 the risk management system allows.
You can always check your Margin Utilisation level on your EXANTE account using the following:
- 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 utilisation 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 email at his registered email address.
It is the client’s responsibility to keep enough funds to fully cover the margin requirements of open positions. If the Margin Call takes place, a fraction of the client's funds becomes Total Blocked Margin – it is the total amount of money blocked as margin for open positions in Futures & Options trade. Its purpose is to cover the potential losses a position can incur. The blocked margin is released once the positions are settled.
Margin call can be covered by:
- sending additional funds (cash or marginable securities)
- reducing position
If you still want to hold open positions for a while, providing an additional deposit, you would need to contact email@example.com to provide the SWIFT confirmation of the transfer.
The same applies to a delayed reduction of open positions. If you need additional time to close a position, contact firstname.lastname@example.org to receive confirmation. Otherwise, the open positions will be closed manually from the side of EXANTE with a fee of 90 EUR/GBP.