A margin call at FNmarkets is a warning that your account balance is too low to support your open trades.
Here’s a detailed explanation:
Purpose: It alerts you that you need to deposit more money to keep your trades open as part of risk management.
How It Works: When the value of your account falls below a certain level due to market movements, FNmarkets will notify you. This happens because the money you have left is not enough to cover the margin requirements for your open positions.
Example: If you have $1,000 in your account and you lose $800 in trades, FNmarkets might issue a margin call, asking you to add more funds to cover the remaining $200 margin.
Action Required: To avoid having your positions closed, you need to deposit more funds or close some of your trades to free up margin.
Risks: If you don’t respond to a Margin Call, FNmarkets may automatically close your trades to prevent further losses.
A margin call is a crucial signal to review your positions and ensure you have enough funds to maintain them