Margin call

A brief explanation of Margin call.

The Amega Geek avatar
Written by The Amega Geek
Updated over a week ago

Few terms in online trading are dreaded as much as margin call.

A margin call occurs when the percentage of a trader's equity falls below the required amount set by the broker (for Amega the margin call level is 50%)

If your account reaches margin call, your platform will notify you by highlighting your trade in red.

When a margin call is triggered, you cannot open any new positions, but you may close existing ones, which in some cases, may be enough to help remove the margin call. You also have the option to add additional funds to your account in order to prevent a stop-out and hope for a recovery.

💡 Tip

No one wants to receive a margin call notification, but if you do, do not panic.

Weigh your options. If you believe the market direction might turn, it may be worth depositing some extra funds to take advantage of the possibility.

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