Margin Calls
If the capital in your account isn’t enough to keep your forex trades open, you’ll be put on margin call. Here’s a guide to what happens next.
Our margin requirements
Trading on margin can be a useful way of making your capital go further, enabling you to make profits far in excess of traditional trades without having to commit to a larger deposit. But it also comes with the risk of much larger losses, which can even exceed the amount of capital in your account
If your account doesn't have the funds needed to keep your positions open, we can close them automatically, per our margin policy.
What is margin call in forex trading?
Margin call is when the equity on your account—the total capital you have deposited plus or minus any profits or losses—drops below your margin requirement. You can find both figures listed at the top of the tastyfx platform under 'Funds' and 'Margins' titles.
At this point, your positions become at risk of being automatically closed in order to reduce the margin requirement on your account.
You can rectify the situation in one of two ways: deposit enough funds to increase your equity above the margin requirement, or close positions to reduce it. Or if you need more help, call our dedicated support team on (312) 981-0498 for information on what to do.
When will my positions get closed?
Typically, there are three scenarios in which your positions will get automatically closed.
- If your equity drops beneath 50% of your margin requirement
- If you remain on margin call constantly for 24 hours
- If you are on margin call during periods of increased volatility or periods when we anticipate increased volatility
Our margin requirements are subject to change. If they increase on one or more of your positions, then your current equity may not be enough to keep positions open.
Finally, it is important to remember that we can close your under-margined positions at any time when you are on margin call. It is your responsibility to have enough funds on your account to fully cover the margin requirement of your open positions.
Will I get notified?
There are two points at which we will aim to notify you that you are on margin call, before we start automatically closing positions.
| When your equity drops beneath… | We will endeavor to… |
|---|---|
| 99% of margin | Send you a notification email |
| 75% of margin | Send you a second notification email* |
| 50% of margin | Start automatically closing positions |
*If your equity level moves below 75% multiple times on a single margin call, we won’t send you multiple notifications.
However, it is important to note that markets move fast, which may mean that we are unable to contact you before your positions get closed. If your equity drops from above 100% of margin to below 50% in less than five seconds, for instance, we will not be able to contact you.
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A huge range of forex pairs with low spreads and fast, reliable execution
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OPEN AN ACCOUNT NOW
A huge range of forex pairs with low spreads and fast, reliable execution
Trade on our award-winning trading app1 available on iOS and Android
24/5 Support from people who know forex
1 #1 Overall Broker, #1 Mobile App, #1 Trust Score, #1 Education, #1 Web Platform are accolades presented to IG, parent company of tastyfx, on January 23, 2024, during the ForexBrokers.com 2024 Annual Awards. Accolades were awarded by the ForexBrokers.com research team based on demonstrated excellence in categories considered important to investors, traders, and consumers. Click here to learn about how they rate brokers.