What are the guiding levels?
Every margin trader has his/her margin closeout level. This is to protect you from losses from any trading position you have. You can check your margin level on our trading platform.
So, what are the equity to margin ratio levels to keep an eye on?
- Safe haven – more than 100 per cent: if the margin level is more than 100 per cent, then you have sufficient cover to keep all your positions open. There is no need to add further funds at the moment;
- Not so good – 80 to 100 per cent: this might be where your margin level falls under 100 per cent and you get a margin call;
- Warning and automatic closure – 50 per cent and below: this could be where your margin level slumps under the 80 per cent threshold.
If a sudden market movement affects your open positions with your maintenance margin suddenly slumping from 80 to 50 per cent, there might be a case of a closeout without warning. If it happens, we will begin closing your position until your margin account again reaches about 80 per cent.