Margin Close-Out Rule

A margin close-out rule is a broker policy — required by several regulators for retail forex and CFD accounts — under which the platform begins closing open positions automatically once account equity falls to a set percentage of the margin needed to hold them. It acts as a backstop to the margin call: instead of waiting for the client to deposit more funds, the system liquidates positions to stop the account sliding further into deficit. The trigger level, and whether it is applied position by position or across the whole account, varies by broker and jurisdiction, so the account terms are the place to check. A close-out is not a guarantee: in a gap or a fast market, positions can still be closed well beyond the trigger level.