Understanding what a margin call is is the first step in knowing how to avoid one.

Margin call triggers when maintenance margin falls below a certain limit.

Learn what is a margin call 👉 here.

One of the main reasons why a trader would be hit by a margin call is partially because of not knowing what causes a margin call and therefore allocating trade sizes without knowledge of margin requirements.

A margin call occurs when a trader's equity falls below the minimum maintenance margin requirement. It is simply the broker's demand for the investor to have an available deposited amount on their account to meet the minimum margin requirements.

👉 When your margin drops below 100% you will receive an email notifying you about that. Please make sure to deposit more funds to your account if you receive it.

Every instrument that you trade on margin is subject to the initial margin, which is the collateral that you post to trade on margin and the maintenance margin (available funds) that you must have in your account at all times to keep your position active in the market.

See the amount of margin size for each asset here.

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