Margin Call

A margin call is the term when a provider (Broker) requests an increase in minimum maintenance margin requirement in a trader’s or an investor’s account, in order to continue an existing open CFD position. Trades opened on Margin such as CFD’s require a certain amount of funds to remain open. If an open CFD position cannot be sustained by the funds in client’s account and are no longer enough to keep the position open, the provider (Broker) will require for additional funds to be deposited in to the client’s account hence a margin call. If a client adds additional funds, the position will remain open. If not, the provider once the margin level on the client’s account drops below certain threshold usually a percentage of the account, will automatically start the procedure to close the open positions at market prices.

By |2018-09-04T13:52:31+00:00September 4th, 2018|0 Comments

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