If you receive a margin call from Ultima Markets, it means your trading account's margin level has fallen to 50% or below. This is a warning that your available margin is becoming limited. Your positions will not be automatically closed at this level, but you should consider reducing your open positions or adding funds to prevent your margin level from falling further.
How Is a Margin Call Triggered?
A margin call is triggered when your margin level falls to 50% or below.
Your margin level is calculated as:
Margin Level = (Equity ÷ Used Margin) × 100%
For example, if your equity is USD 500 and your used margin is USD 1,000, your margin level is 50%.
Your positions remain open at this level. However, if your margin level continues to fall to 20% or below, a stop-out may occur, resulting in positions being closed automatically.
What Can I Do After Receiving a Margin Call?
You can consider the following actions to improve your margin level:
- Close or reduce open positions: Releases used margin and reduces your market exposure.
- Deposit additional funds: Increases your trading account equity once the deposit is credited.
- Review your leverage: Increasing leverage may reduce margin requirements where permitted, but it does not reduce your market exposure or potential losses.
How Can I Reduce the Risk of Future Margin Calls?
- Maintain sufficient free margin to support your open positions.
- Manage your position size according to your risk tolerance.
- Use Stop Loss orders to help manage potential losses, although execution prices are not guaranteed.
- Monitor your margin level in MetaTrader 4 (MT4) or MetaTrader 5 (MT5), especially during periods of high market volatility.
- Review automated trading activity, including Expert Advisors (EAs) and copy trading services.
