Margin Call & Liquidation

If an account's Buying Power (i.e. Account Equity) drops below the Total Margin requirement, the account will be subject to Margin Call and/or Liquidation.

A Margin Call is a request for the user to deposit additional funds such that the account value once again meets the margin requirements. Depending on the situation, closing positions can also bring the account back into a margin compliant state.

Liquidation occurs when the broker forcibly closes out an investor's positions to bring the account back to the required margin level or to prevent further losses. This typically happens if the investor fails to meet a margin call or if the account equity drops significantly.

The full terms and legal details are available in the account agreements with both Architect and Straits.