When trading with Margin, it is crucial to maintain sufficient Available margin levels. Always make sure that Available Margin in your trading account does not drop to 0%. If Available margin drops below a certain point, you will receive a Margin Call. Should available margin drop to 0%, automatic Liquidation may occur. Note: Margin requirement is the minimum amount needed to keep position from getting liquidated. Traders are advised to keep a sufficient buffer and NEVER utilize 100% of Available margin.
MARGIN CALL is an intra-platform and email notification which warns that Available Margin in your Trading account is low and that Liquidation may occur should your positions continue to incurr further losses. If you are convinced the market will turn around and the trade will end up profitable, additional funds can be added to your trading account. Note, that it is highly recommened to do this BEFORE reaching Margin Call level.
LIQUIDATION can occur if Available margin in your Trading account drops to 0%. In this case all of your open positions will be closed at market price locking in the P/L from all open positions. The initial Margin, which was used to leverage these trades will be “unlocked” and available for further use or withdrawal.
To minimize risks of liquidation, it is highly recommended to use Stop Loss and Take Profit protection orders.