Margin call is the term for 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.
At this point, your positions may be closed automatically to reduce your margin requirement.
You can rectify the situation yourself in one of two ways: deposit enough funds to increase your equity above the margin requirement, or close positions to reduce it.
Notifications and automatic closure
tastyfx aims to notify you twice before closing any positions. The levels depend on your account type.
When your equity falls to... | Standard, Zero+, MT5, MT4, IRA | tastyfx Prime |
First notification email | 99% of margin | 99% of margin |
Second notification email | 85% of margin | 75% of margin |
Automatic closure begins | 75% of margin | 50% of margin |
If you hold both a standard and a Prime account, each is margined independently and each follows its own levels.
If your equity moves below the second notification level more than once during a single margin call, additional emails won't be sent. Markets can also move faster than we can contact you—if your equity falls from above 100% of margin to below the closure level within seconds, positions may close before any notification reaches you.
Other reasons positions may be closed
Positions may also be closed if you remain on margin call continuously for 24 hours, or during periods of increased or anticipated volatility. Margin requirements can change; if they increase on your open positions, your current equity may no longer be enough to keep them open.
It is your responsibility to maintain sufficient funds to cover the margin requirement of your open positions.