Germany’s financial regulator “BaFin” started to force CFD brokers to protect their clients from negative account balances. Negative account balances can happen when highly leveraged trades are held in very volatile markets. We welcome this decision, because it protects clients from unexpected debt and, although, we implemented such a protection on Barginex as well.
A certain level, expressed as a percentage, that when reached causes a trader's account to automatically begin liquidating his or her positions. A trader determines a liquidation level when creating his or her account. By automatically liquidating when this level is reached, the trader's risk decreases, and it prevents the trader from losing more money. If prices move against you, your margin balance reduces, and you will have less money available for trading.
Important : A position is liquidated when it loses 80%.
Until a position is closed, the P&L will remain unrealized. The profit or loss is realized (realized P&L) when you close out a trade position. In case of a profit, the margin balance is increased, and in case of a loss, it is decreased.