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Knowledge base: ECN
Margin Trigger
Posted by on 29 January 2014 03:36 PM

The ECN Broker transmits the clients Limit Orders to the Marketplace which causes the illustrated in Fig. 2 to occur. Once a Limit Order is placed in the Marketplace the Client must put up the margin for the position. However, at the moment when the Limit Order price is triggered and the margin is not met, the necessary margin is added to the client's account automatically (Credit In) and then the position is executed. As soon as the order has been executed, the credited amount will be automatically deducted from the account according to the Credit Out procedure. If the margin level after the deduction (credit out) is less than 50% - order will be closed immediately according to the Stop Out procedure. All Clients should carefully monitor their trading accounts to prevent such situation from occurring. If the margin level after the deduction (credit out) is higher than 50% - the order will remain open until the SL or TP level is reached or the client closes the position manually.

Below you can see Logs for situations when the Limit Order price is triggered but the margin is not met.

Fig. 1

Sell Limit 30 Lots GBP/USD was opened at 07:38:09 server time (see journal logs above).

Fig. 2

The trading account was automatically credited by system - Credit In $60 467.09 - because at the moment when the Limit Order price was triggered the margin was not met and just after Sell Limit was opened credit was withdrawn - Credit Out -$60 467.09.

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