Margin Ratio & Risk Management

Learn how Margin Ratio tracks your liquidation risk, with warnings at around 80% and liquidation at 100%.

The Margin Ratio = (Maintenance Margin requirement) / (Account Equity). As this ratio rises toward 100%, the risk of liquidation grows. Roxom’s system may issue a warning alert to the trader when Margin Ratio approaches a critical level (set default at ~80% the platform sends a UI notification or email suggesting that more collateral be added or the position reduced). This is a courtesy risk warning; traders should actively monitor their margin levels as these warnings may fail or be too late to act. Ultimately, if Margin Ratio hits 100%, the account has no free margin left and liquidation will be triggered.