What is a warehouse warning?

A warehouse warning is not good news. When the amount of equity you hold in your margin account is too low to support your trading and other borrowing rights, the system will send you a burst alert. When this happens, you need to top up your account to offset possible losses.

You can use safeguards to prevent the margin from falling below the required level, such as placing a stop-loss order. Stop orders are similar in principle to insurance policies and are a very useful feature not only for novice traders, but also for experienced and experienced investors.

If you fail to top up the margin in time after receiving the warning notice, you may face bankruptcy.

Margin closing-what do you need to know?

Every margin trader has a margin closing level, which is to protect you from any trading position. Your margin level can be viewed here.

Please refer to the following information:

• High-quality protection (more than 100%): If the margin level exceeds 100% of the required margin, then all your positions have sufficient capital protection and there is no need to increase funds;
• Less than ideal (80% - 100%): If your margin level is less than 100%, you may receive a short warning;
• Automatic closing warning (50% and below): Once the margin level is below 80%, you will receive an automatic closing warning;
• Automatic closing without warning: when your open position is affected by sudden market movements, it means that your position margin suddenly drops from 80% to 50%;
• 一旦触发平仓，您的未结仓位将开始自动平仓，直到您的保证金水平再次达到80％左右。

  What else do you need to know?

  Keep in mind that your broker may change the position margin on your account at any time. Given that most trading platforms run on software devices, these are not "human" operations.

  A successful Internet transaction cannot be achieved without the swift execution of any relevant operations. Web connectivity, reliable software and hardware, and the risk of possible equipment failure.

  One more thing, you may have to pay a moderate amount of transaction fees and interest on the loan, which will be deducted from your trading profits.

  What's the worst that could happen?

  If the market suddenly turns and you still have an unsettled position, you are likely to lose all your funds in your margin account and even go into debt.

  Although the broker will try to settle all positions for you, there is still no guarantee that your capital loss will be fully protected.

  Some retail trading platforms guarantee that they will waive all additional debt in the event that traders become indebted due to the broker's failure to cover margin losses on their positions in a timely manner.

  You will only lose the funds deposited with the broker.

  Be sure to check out the small print.

  What is the best example?

  Trade carefully, use limit orders instead of market orders, or use stop orders to control capital losses. Monitor transactions, settle loss orders in a timely manner and avoid triggering burst alerts.

  In this way, you can use margin trading to make a lot of money while avoiding possible capital losses.