<h2>Liquidation Margin</h2>
<p>Liquidation margin, also known as maintenance margin, is a key concept in trading that helps manage risk. It's the minimum amount of money you need to have in your trading account to keep your positions open. If your account balance falls below this level, your positions may be closed by your broker to prevent further losses.</p>

<h2>How It Works</h2>
<p>Liquidation margin is calculated as a percentage of the total value of your open positions. This percentage varies depending on the leverage you're using. For example, if you're trading with a leverage of 1:300, your liquidation margin might be around 0.33%.</p>
<p>Here's a simple formula to calculate it:</p>
<table>
<tbody>
<tr>
<td><strong>Liquidation Margin</strong></td>
<td>=</td>
<td><strong>Total Position Value</strong></td>
<td>×</td>
<td><strong>Liquidation Margin Percentage</strong></td>
</tr>
</tbody>
</table>
<p>For instance, if you have a total position value of $10,000 and your liquidation margin is 0.33%, your liquidation margin would be $33.</p>

<h2>Why It Matters for Traders</h2>
<p>Liquidation margin is crucial for traders as it helps prevent losses from escalating. If the market moves against your positions and your account balance falls below the liquidation margin, your positions will be closed automatically. This is known as a margin call.</p>
<p>Here's why it's important:</p>
<ul>
<li>It protects your account from being overleveraged and helps manage risk.</li>
<li>It ensures that you have enough capital to cover potential losses.</li>
<li>It prevents you from incurring debts that you can't afford to pay back.</li>
</ul>

<h2>Example</h2>
<p>Let's say you're trading EUR/USD with STB Provider on MetaTrader 5 with a leverage of 1:300. You open a position worth $10,000. Your liquidation margin would be around $33. If the market moves against you and your account balance falls below $33, your position would be closed to prevent further losses.</p>

<h2>Key Takeaways</h2>
<ul>
<li><strong>Liquidation margin</strong> is the minimum account balance required to keep your positions open.</li>
<li>It's calculated as a percentage of your total position value.</li>
<li>It helps manage risk and prevents overleveraging.</li>
<li>If your account balance falls below the liquidation margin, your positions may be closed automatically.</li>
</ul>