A Margin Call is also referred to as an “MC3” or a “stop out”.
All FriedbergDirect powered by AvaTrade Technology 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.