The most common issue is that it may be you are attempting to close an order during a period of increased margin requirements, usually present during times of high market volatility.
It is our policy that during high market volatility all leverage above 1:200 is calculated at 1:200, in order to minimise risk for both trader and broker.
No margin is held on hedged orders for all instruments except Cryptocurrency. However during a period of increased margin requirements, closing an open hedged position can fail if there is insufficient free margin to cover the increased margin requirements, specifically the increased margin requirements on the latter half of a hedged order at the time of closing.
Please always ensure that you have sufficient free margin in your account in order to be able to cover the increased margin requirements during high market volatility.
You deposit 100 USD and open a Buy position for 1 lot EURUSD and a Sell position for 1 lot EURUSD with leverage 1:2000 at a price of 1.1000. The free margin at the moment of opening hedged positions is USD 86.
At the time of increased margin requirements when the leverage changes to 1:200, you decide to close the Sell position. The expected margin for the remaining order is calculated as follows:
lot * contract size / leverage * current market price EURUSD.
1*100000/200*1.1000 = USD 550.
The free margin in this case is going to be negative:
86 - 550 = USD -464
Therefore, you won’t be able to close the hedged position as there is an insufficient amount of free margin (USD -464) to support the margin requirements.