Margin & Liquidation

Margin is the portion of your account balance set aside as collateral to support open positions. Understanding how margin works is essential for managing risk and avoiding account breaches.

Margin and Collateral

• Initial Margin: The capital reserved when you open a position. This depends on the asset class and leverage.

• Maintenance Margin: The minimum balance required to keep a position open. If your equity falls below this threshold, the position becomes at risk of liquidation.

• Collateral: Your account balance (virtual funds in Supertrade) acts as collateral. All trades are backed by this collateral.

Margin Level and Monitoring

Supertrade provides clear metrics in your trading dashboard:

• Margin Level: Ratio of equity to margin used. A higher percentage indicates stronger protection against liquidation.

• Free Margin: The unused margin available for opening new trades.

• Used Margin: The margin already allocated to existing positions.

Monitoring these values is key. If free margin drops too low, new positions cannot be opened, and existing trades are at higher risk.

Liquidation

• If losses push your account equity below the required maintenance margin, liquidation may occur.

• During liquidation, open positions are closed automatically to protect against further losses.

• Liquidation events count as breaches in Supertrade, and can result in the account being paused.

Margin management is as critical as trade selection. Proper use of leverage and consistent monitoring of collateral help preserve your account and increase the chance of long-term success in Supertrade.