this happens when Account Value falls below Used for margin requirement and Margin Utilisation exceeds 100%.
See below example:
Account Value = 138.55
Used for Margin Requirement = 150
Margin Utilisation = 108%
For FAB TraderGO and FAB Trader, Margin Call and Margin Stop-out notification will be triggered on the trading platform.
At 10:00pm — Deposit $100 USD,
Margin Used = $80
At 11:00pm --- Unrealized Loss of $20, Net Asset Value = $100USD - $20USD = $80USD
NAV = $80 --- (Margin Used = 100% of Net Asset Value – First Margin call)
At 12:00am --- Unrealized Loss of $36
NAV = $64 --- (Margin Used = 125% of Net Asset Value – Second Margin call)
At 1:00am -- Unrealized Loss of $46
NAV = $53– (Margin Used = 150% of Net Asset Value – Margin Stop Out)