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Understanding Margin Calls on Coinmetro’s Margin Platform

Sophie avatar
Written by Sophie
Updated over 2 weeks ago

A Margin Call is a notification from Coinmetro alerting you that your margin position is in danger. On our Margin Platform, this happens when your Margin Level drops to a critical threshold — specifically when your total allocated collateral reaches 0%.

When this occurs, you will receive a Margin Call via email, letting you know that some or all of your positions may be at risk of automatic liquidation if corrective action isn’t taken.

💡 How Margin Calls Work

A Margin Call serves as a warning signal that your account’s collateral is insufficient to maintain your open positions.

  • At Coinmetro, a Margin Call triggers when your Margin Level hits -80%.

  • If no action is taken after the call, the platform may automatically close positions to prevent further losses, a process known as liquidation.

  • This mechanism protects both your account and the platform from excessive risk.

🔔 Tip: Responding quickly to a Margin Call, by adding more collateral or closing some positions, can help prevent liquidation.

🛡️ Managing Your Margin to Avoid a Call

To reduce the risk of a Margin Call:

  1. Monitor Your Margin Level: Keep an eye on your Margin Level and Open P/L in real time.

  2. Add Collateral: Increasing your collateral provides a buffer and helps maintain your positions.

  3. Close or Reduce Positions: If the market moves against you, reducing exposure can prevent your Margin Level from falling further.

  4. Use Stop-Loss Orders: Automated stop-loss orders can help limit potential losses and protect your account.

⚠️ Important: This article is for educational purposes only and should not be considered financial advice. Margin trading involves significant risk and may result in the loss of your invested funds. To practice trading without risk, we recommend using Coinmetro’s Demo Platform, where you can simulate trades and explore strategies safely before trading with real funds.


FAQs

📌 What triggers a Margin Call on Coinmetro?

A Margin Call occurs when your Margin Level drops to -80%, or when your total allocated collateral reaches 0%, putting your positions at risk of liquidation.

💌 How will I be notified of a Margin Call?

Coinmetro sends an email notification to alert you when your account reaches the critical margin threshold.

⚠️ What happens if I ignore a Margin Call?

If no action is taken, some or all of your positions may be automatically closed (liquidated) to prevent further losses.

💸 How can I prevent a Margin Call?

You can add more collateral, close or reduce positions, and use stop-loss orders to protect your account.

📊 Can I still trade after a Margin Call?

Yes, as long as your Margin Level remains above critical thresholds. Adding collateral or closing positions can restore your ability to trade safely.

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