A Margin Call is a warning that your trading account is approaching a level where there may not be enough available funds to support your open positions.
At Kudo, a Margin Call notification is triggered when your Margin Level reaches 100%. This serves as an alert that your available margin is becoming limited and that action may be required to avoid further account restrictions.
When a Margin Call occurs, traders may consider:
- Depositing additional funds.
- Reducing position sizes.
- Closing one or more open trades.
- Reducing overall market exposure.
What Happens if My Margin Level Falls Further?
Kudo applies a 50% Stop-Out Level.
If your Margin Level falls to 50% or below, MetaTrader 5 (MT5) may begin automatically closing open positions, starting with those generating the largest floating losses. This process helps protect your account from falling into a negative balance.
What is Margin Level?
Margin Level is calculated as:
Margin Level = (Equity ÷ Used Margin) × 100
Monitoring your Margin Level is an important part of risk management, particularly when trading leveraged products. Maintaining sufficient free margin can help reduce the risk of receiving a Margin Call or triggering a Stop-Out.
You can monitor your Margin Level, Equity, Margin and Free Margin at any time through MetaTrader 5 (MT5).