Margin refers to the portion of your real funds (known as Cash Equity) that is required to keep your open trades active. To continue trading without interruption, your account must maintain enough Cash Equity.
If the market shifts suddenly and your Cash Equity drops into negative territory, a margin call may occur. This means that all your open trades will be closed, and your account will be temporarily restricted from placing new trades. Once all trades are closed and your Cash Equity returns to a non-negative value, trading access is restored.
Example:
If your Cash Equity is -$50 and your open trades are worth $50 or less (including unrealized profits or losses), the system will automatically close all positions to prevent further losses.
What Happens During a Margin Call?
If your equity level approaches 20%, the platform will display a warning. You have two main options to respond:
- Add more funds to your account
- Manually close some of your open positions
If no action is taken and the equity drops further, the system will close all trades and pause your trading activity.
Once closed, your Cash Equity is reviewed. If it's still negative and your account qualifies, your balance may be reset to zero under a Negative Balance Protection policy. Trading can resume once your balance is no longer negative.
Can a Margin Call Happen Even If Total Equity Is Positive?
Yes — because margin calls are based on Cash Equity, not Total Equity.
Total Equity may include bonus funds or other credits that don’t count toward margin calculations. Therefore, even if your Total Equity appears positive, a margin call can still occur if your actual Cash Equity is negative.
Tips to Avoid a Margin Call
- Monitor your Cash Equity regularly
- Act quickly if a warning appears
- Add funds or close trades to reduce exposure