Hi every one !
after i read all the Margin Trading 101 and try to understand it
i checked with my broker for my Margin call level notification .
and the answer was :
Margin call notification
A warning is sent when your equity reaches 130% of the required margin.
after i tried to find the answer with my poor math
so i find out that by other word it is a 130% Margin level .
but i still not sure about it !
i hope some one can confirm that for me or help me to fine the right answer .
I once asked my broker the same question about margin call and stop out level and got the below reply:
Our margin call/stop out levels are 70%/50%. Basically getting a margin call depends on the used margin in your account, let me explain with the help of an example ( with you opening an account with $10,000) taking different scenarios in consideration.
When used margin is $1000
if used margin is $1000 then in this case if equity drops below 70% of used margin i.e. if equity drops below $700 then, you will get the margin call alert and if equity drops below 50% of used margin i.e. if equity falls below $500, then your positions will be stopped out by the system.
When used margin is $5000
if used margin is $5000 then in this case if equity drops below 70% of used margin i.e. if equity drops below $3500 then, you will get the margin call alert and if equity drops below 50% of used margin i.e. if equity falls below $2500, then your positions we will be stopped out by the system.
thanks for your answer!
but as you are trying to explain it to me so you have a clear way to calculate it.
and unfortunately and because of my poor math I cloud not find some way to calculate by my self,
so I hope that u can help me to find any other way to form it in a simple way that is better than what my broker said “when equity reaches 130% of the required margin”.
If you get a margin call from your broker, it means that you need to pay attention to your account. It also depends upon the used margin that is in your account.