A margin call is a notification about insufficient money in your trading account to open trades and/or to keep your positions open.
This notification is sent to your email and warns you that some of your positions may be closed.
Here is what you can do to avoid that:
- Make a deposit to increase your usable margin;
- Close some of your open positions to prevent their liquidation.
Margin call level
This is the margin level at which you risk having some of your positions liquidated.
You’ll receive a first margin call notification when your margin level reaches 75%.
A second notification is sent when your margin level decreases to 50%.
In the photo below, you can see a Margin Call (MC) level of 90.80%.
Floating Profit/Loss (FPL) is negative, which is the reason for the decreasing MC Level. Increasing FPL will lead to decreasing MC.
Once MC reaches 75%, we’ll send you the first notification about a possible margin call. You’ll see this notification in the Messages section on the trading terminal. When MC reaches 50%, you’ll receive a second notification about a possible margin call.
As soon as MC reaches 25%, the positions liquidation procedure will start automatically, and positions will be closed as market orders.
Position liquidation level
This is the margin level at which your positions are automatically liquidated. On CEX.IO BROKER, it’s 25%.
If you don’t top up your balance and your margin level reaches 25%, your positions will start to be closed automatically.
The number of closed positions may vary: we may close all your positions or only enough to get your margin level above 100%.
In this way, we make sure you can repay the funds you have borrowed using the value of your positions and your account balance and reduce your risk of losses and slipping into a negative balance.