What is Margin Call?

Margin Call is an important warning in Futures trading. It occurs when your margin account balance is close to the minimum maintenance margin level (Maintenance Margin). This signals that your account no longer has enough assets to hold the current trading position.

Why does Margin Call occur?

When the Margin Ratio (Risk Ratio) of the position reaches ≥ 70%, the system will send a Margin Call notification (via web, app, or email).

  • If the Margin Ratio increases to ≥ 85%, the system will:
    • Cancel all open and pending orders (except TP/SL or Reduce Only orders*).
    • Send a Liquidation Call to warn of liquidation risk.
  • If the Margin Ratio continues to reach ≥ 100%, the position will be liquidated.

Note: Margin Call and Liquidation Call are just warnings, not meaning that the position has been liquidated. However, in the case of strong market volatility, especially with highly leveraged positions, in some cases, when you receive these two warnings, your position may have been liquidated immediately.

*Reduce Only is an order in Futures trading that is only used to reduce or close the current position, not to open or increase the position size, not to increase the risk.

Effects of Margin Call

When Margin Call is triggered, the following actions will take place:

  • Additional margin request: You need to deposit more assets to maintain a safe margin level.
  • Cancel open and pending orders: Open and pending orders with the purpose of increasing the volume of open positions will be canceled to minimize risk.

How to Avoid Margin Call*

To avoid falling into a Margin Call situation, take the following measures:

  • Monitor Margin Ratio regularly: Check the risk ratio and adjust positions promptly.
  • Use Leverage Wisely: Avoid using too much leverage to avoid the risk of your account being eroded quickly.
  • Set Stop Loss: Automatic stop loss orders help protect your account when the market moves unfavorably.

*Risk Warning: This is not investment advice. In the highly volatile cryptocurrency market, the value of your investment may increase or decrease, and you may not be able to recover the invested capital. You are solely responsible for your investment decisions. ONUS is not responsible for any losses you may incur.

In particular, Futures trading is inherently risky. Before trading, you should evaluate for yourself whether the transaction is suitable for your objectives and conditions, including the potential risks and rewards. Refer to Risk Management and Responsible Trading for more information.

Why Is Margin Call Important?

Margin Call is not only a warning signal but also helps you be aware of the risks to your account. Understanding and managing Margin Call effectively will help you trade Futures safely and optimize profits.