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How does Tiered Margin work on an FXCM MT4 account?

As of July 29th 2018 MT4 accounts with FXCM will utilize a different version of FXCM’s Tiered Margin because the MT4 platform handles the margin call (liquidation) process differently than FXCM’s Trading Station Platform.

Upon opening a position you will be required to set aside an initial entry margin as well as a maintenance margin. However, due to a platform limitation on MT4 there are no pop up notifications on the platform when your Free Margin is at zero or less.

While the Entry/Maintenance and Liquidation margin levels are the same as Trading Station accounts, clients trading with MT4 should ensure they understand three important figures within the platform:

  • [Equity] is the "floating" value of funds in the account, including profits and losses on open positions.
  • [Margin] is Used Maintenance Margin, this is the amount currently in use to maintain open positions. If the equity falls below 50% of Margin then the position floating the largest loss will be closed, this process is repeated if Equity reaches or remains below 50% of Margin.
  • [Free Margin] is Usable Maintenance Margin. When this value is at zero or less the Margin Warning is triggered and additional positions cannot be opened.