Account Equity Falling Below Maintenance Margin Triggers Liquidation

Summary

The support note explains liquidation in terms of account equity and maintenance margin. When positions move against a trader and account equity falls below the required maintenance level, a liquidation event occurs. This links trading losses to the account-level collateral threshold that determines whether positions can remain open.

The note offers only this basic cause and points readers to separate documentation for the mechanics. It does not describe margin calculations, liquidation sequencing, fees, partial liquidation, or ways to manage liquidation risk, so it serves as a concise definition rather than a full operational guide.

Key ideas

• Liquidation occurs when adverse position moves reduce account equity below maintenance margin.
• The note describes the trigger at the account level rather than giving instrument-specific rules.
• It does not explain the calculation or process used to liquidate positions.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.