Here you have to remember this formula:
Usable Margin = Equity - Used Margin
Equity is the net present value of your total investment.
(i.e. - Used Margin + Cash in Hand)
Used Margin is the total amount money you have used as margin (or the amount of money locked in by your broker)
Usable Margin is the amount of free money in your account that you can use (i.e. - Cash in Hand).
So, it’s the Equity that is used to determine and trigger the margin call, not the account balance.
As long as your Equity value is greater than your Used Margin, you will not have any Margin Call.
CARA KAYA DARI FOREX EPS 3: RAHASIA SUPAYA TIDAK KENA MARGIN CALL FOREX & GOLD
[as your usable margin will be higher than 0 (zero)]
( Equity > Used Margin ) = NO MARGIN CALL
( Usable Margin > 0 ) = No MARGIN CALL
But If your trades go againt you to some extent and your total Equity value equals or drops below your Used Margin, you will receive a Margin Call.
[i.e- Usable Margin will become less or equal to 0 (zero)]
( Equity =< Used Margin ) = MARGIN CALL
( Usable Margin <=0 ) = MARGIN CALL
Let’s assume your broker takes 1% margin from you (i.e.
- providing you a max of 100:1 Leverage). And you buy 1 mini lot of EUR/USD pair (10,000 Unit).
If price remain constant, then your equity value would be same as earlier ($5,000), but your used margin would now show $100, and usable margin would be $4,900.