What are the guiding levels?
Every margin trader has his/her margin closeout level. This is to protect you from losses from any trading trade you have. You can check your margin level on our trading platform.
So, what are the equity to required margin for short-operations and long-operations (prepayment) ratio levels to keep an eye on?
- more than 100 per cent: if the margin level is more than 100 per cent, then you have sufficient cover to keep all your trades open. There is no need to add further funds at the moment;
- 80 to 100 per cent: this might be where your margin level falls under 100 per cent and you get a margin call;
- 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 trades 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 trades until your prepayment again reaches about 80 per cent.