A Margin Call is also referred to as an “MC3” or a “stop out”. All AvaTrade’s accounts are Margin Leveraged accounts. Traders must maintain adequate account balances to sustain their open positions.
- On MT4 and AvaTradeAct accounts, if your Equity level drops to 50% of your Margin, a Margin Call will occur.
- In AvaOptions accounts, if your Net Liquidation Value drops below 25% of Required 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 50% (25% on AvaOptions) of Used Margin, then the following will occur: On AvaOptions platforms, all positions will be closed.
On the MT4 platform, the largest losing position in your account will be closed, along with subsequent positions until the account Equity Level returns above 50% (25% on AvaOptions).