Margin Calls & Liquidation
What is a margin call?
A margin call happens when the value of your account falls below the required margin level. When this happens, you’re required to add funds or reduce positions to bring your account back into compliance.
If a margin call isn’t met in time, GigaTrade may, at its discretion, close or reduce positions without prior notice to manage risk or meet margin requirements. .
Margin calls can occur due to market losses, increased margin requirements, or higher volatility, and they apply to both stocks and futures.
What happens if I do not meet a margin call?
If a margin call is not met on time, Gigatrade may close or reduce positions to bring your account back into compliance.
To manage risk, Gigatrade may liquidate positions at any time, with or without notice, including during periods of high volatility or when margin requirements aren’t met. You’re responsible for any losses that result, including losses that exceed your account balance.
Keeping your account funded and monitoring margin levels can help avoid forced liquidations.