A Margin Call is our alert to you to deposit more funds, or to (partially) close your positions if you so choose, when the market is against your favour. You will not be able to initiate new positions until your account is out of a margin call.

All Margin Call alerts will be sent to you via the email address associated with your LFX Account. However, clients are advised to monitor their account regularly to avoid the force liquidation of positions.

UTRADE MT4

Margin call occurs when your margin level falls to 100%

I.e. Margin Level = (Equity / Maintenance Margin) *100% ≤ 100%

When Margin Level ≤ 50%, your worst performing position/s will be auto-liquidated

Example:

In this example, the USDCAD Position is making the greatest loss and hence it is the worst performing position.

This position will be auto-liquidated in full notional when account margin level falls to 50% or below.

This process is repeated until the account margin level recovers above 50%. (I.e. 50.01%)

UTRADE Delta

Margin call occurs when your Initial Margin Requirement % reaches 100% and above

I.e. Initial Margin Requirement % = (Initial Margin / Projected Balance) * 100% ≥ 100%

When Initial Margin Requirement % ≥ 200%, your worst performing positions will be auto-liquidated

In this example, the USDCAD Position is making the greatest loss and hence it is the worst performing position.

This position will be auto-liquidated either in partial or full notional when account’s initial margin requirement % is 200% or greater.

This process is repeated until the account initial margin requirement % recovers below 200%.