What's Margin Call Indices?
A margin call is when a trader's account free margin goes below required margin level that is set by the online broker. This means that because the free margin in trader's account has gone below required margin level then the trader gets a margin call and some of the open trades in trader's are closed by the online broker until this margin level goes back up to above required margin level.
Some of the open trades might be closed or all of the open trades may be closed-out if this margin call is automatically executed by broker.
What's Stock Indices Margin Requirement Level?
Now if Your Stock Indices Leverage is 100:1
When trading if you have $1,000 and use leverage option of 100:1 and buy 1 standard lot for $100,000 your margin on this trade is the $1000 in your stock trading account, this is the money which you will lose if your open trade transaction moves against you, the other amount $99,000 that's borrowed, stock broker will close the open trades automatically using a Indices Margin Call once your $1,000 has been taken by the market.
But this is if your broker has set 0 % Margin Requirement before closing out your stock trades automatically using this Margin Call.
What's 20 percent Indices Margin Requirement Level?
For 20 percent margin requirement before closing out your stock trades automatically using a Margin Call, then your transactions will be closed once your trade account balance gets to $200 - at $200 you'll get a margin call.
What's 50 % Margin Requirement Level?
For 50 % requirement of this level before closing out your stock trades automatically using a margin call, then your transactions will be closed once your trade account balance gets to $500 - at $500 you'll get a margin call.
What's 100 % Margin Requirement Level?
If the online broker sets 100 % margin percentage level requirement of this level before automatically closing your open trade positions automatically using what is known as a margin Call - at $1,000 you'll get a margin call, then your stock trades will be closed once your trade account balance gets to $1,000: Meaning stock trades will close-out as soon as you execute a 1 standard lot on this account because even if you pay 1 point spread your account balance will go to below $1,000 and needed margin requirement percentage is 100% i.e. 1,000 dollars, therefore your stock orders will immediately get closed using a Margin Call once your margin requirement falls below 100%.
Most brokers don't set 100 % margin requirement, but there are those brokers that set 100 % margin percent level requirement are not suitable for you at all, even those that set their requirement at 50% trading margin percentage level requirement are still not suitable. Choose the ones that set 20% margin percentage level requirement, in fact, those brokers that set at 20% Margin Requirement are some of the best because the likely-hood they close-out your trade using a Indices Margin Call is reduced as shown in the example above.
To Learn and Know More about Indices Leverage & Margin - How to Read the Topics Below:
Leverage & Margin Explained
What's a Trade Plan? - Written Plan Example Template
Alternatives: Automated EA Trading or Copy and Paste Signals
