Part 1: What is a Margin Call (Liquidation)
When your account margin is insufficient to maintain your current positions, the system will automatically force close all or part of your positions to prevent further losses. This usually occurs when market volatility amplifies losses and margin falls below the maintenance requirement, protecting the safety of both user and platform funds.
A margin call is equivalent to liquidation. When your margin is insufficient to sustain positions, the system will take over and force close them to avoid expanded losses.
Part 2: When Does a Margin Call Occur
A margin call is triggered when the margin ratio reaches or falls below 100%. For cross-margin mode, the total margin is taken into account; for isolated-margin mode, only the margin of individual positions is considered. The maintenance margin ratio dynamically changes based on position size.
Part 3: What Happens During a Margin Call
Once a margin call is triggered, the system will cancel all your outstanding orders and transfer positions to market makers for settlement. If your assets are exhausted and still insufficient to cover losses, the platform risk fund will cover the remaining deficit.
Part 4: How to Avoid a Margin Call (1)
Method 1: Add more margin. When you notice a low margin ratio, transfer additional margin promptly to raise the safety threshold.
Part 5: How to Avoid a Margin Call (2)
Method 2: Set a stop loss. Pre-set a stop loss price so that positions are automatically closed when the price hits that level, avoiding margin call risks.
Part 6: How to Avoid a Margin Call (3)
Method 3: Reduce leverage. Lower leverage means a more distant liquidation price and stronger resistance to market volatility.
Risk Warning
Any remaining margin after a margin call will be collected as liquidation fees. Leveraged trading carries high risks; please control your positions rationally and monitor your margin ratio closely.