Help CenterUnderstanding Margin Calls and Requirements
Margin Calls: Safeguarding Your Account
Margin calls play a crucial role in managing risk within your Excent Capital account. They are triggered when your account equity falls below a certain threshold, which is 100% of your margin requirement at Excent Capital.
What happens during a margin call?
- You will receive a notification from Excent Capital informing you about the margin call.
- This notification will specify the amount of additional funds needed to bring your account equity back above the required level.
How to address a margin call:
To avoid having your positions automatically closed by the system to maintain the required margin, you have two options:
- Deposit additional funds: This increases your account equity and brings it back above the margin requirement.
- Reduce your position size: This involves closing some of your open positions, thereby lowering the margin used and improving your account equity ratio.
Understanding Margin Requirements
Margin requirements are percentages of the total position value that you need to have available in your account to hold a leveraged position. These vary depending on the specific instrument you are trading. For instance, the margin requirement for a specific stock CFD might be 20%, while another might be 50%.
To find the margin requirement for a particular instrument:
- Use the instrument information section on the Excent Capital platform.
- You can also contact our customer support team for assistance.
Remember:
- Margin calls are not a signal to buy or sell. They simply indicate the need to address your account equity level to maintain your open positions.
- Managing your risk is crucial when using leverage. Always understand the margin requirements for your trades and monitor your account equity to avoid margin calls.
If you have any further questions about margin calls or requirements, please don't hesitate to contact our helpful customer support team.