A margin call can still occur even when your account seems to be above the margin level, especially during periods of high market volatility.
The Volatility and Execution Reality:
Rapid Price Swings: When price movements are sudden, your equity can drop quickly, causing your margin level to fall below the required threshold, even if only for a short time.
Instantaneous Trigger: Even if the market recovers shortly after, the margin call may already have been triggered based on your account’s equity at that exact fraction of a second.
Best Practices to Reduce Your Risk:
To reduce the risk of unexpected liquidations happening, the following is account risk management :
Monitor Levels Closely: Closely monitor your live margin level percentage while holding open trades during high-impact news releases.
Maintain Sufficient Buffers: Keep your account well-funded to withstand sudden market spikes and temporary spread widening.
Manage Exposure: Adjust your position sizes down to ensure your overall risk profile helps you stay safely above the system's margin call threshold.