A Margin Call is also referred to as an “MC3” or a “stop out”.
All Friedberg Direct accounts are Margin Leveraged accounts. Traders must maintain adequate account balances to sustain their open positions.
If your Equity level drops to 10% of your Margin, a Margin Call will occur.
It is the trader's responsibility to maintain a sufficient level of margin in their account. If an Account’s Equity falls below 10% of Used Margin, the largest losing position in the account will be closed, along with subsequent positions until the account Equity Level returns to above 10%.
In AvaOptions accounts, if the Net Liquidation Value drops below 25% of Required Margin, a Margin Call will occur and all positions will be closed.