Futures Equity-to-Margin Ratio

What is Equity-to-Margin ratio?

Equity-to-Margin ratio (EMR) is calculated by dividing your Net Liquidation Value (NLV) by Initial Margin. It is used to measure the extent to which equity can cover margin requirements. The larger the EMR, the safer your account is.

The calculation logic is as follows:

• NLV ≤ 0，EMR = 0%
• NLV ＞0，Initial Margin = 0， EMR = 100%
• NLV > Initial Margin > 0, EMR = 100%
• Initial Margin ≥ NLV and NLV > 0，EMR = NLV / Initial Margin

What should I pay attention to for Equity-to-Margin ratio?

Webull Financial LLC generally liquidates open positions if the client's Equity-to-Margin ratio drops to 4%. Rates are subject to change at any time without notice.

When the Equity-to-Margin ratio reaches 20%, 15% and 10% respectively, a liquidation alert will be sent on a best-efforts basis. We strongly recommend that you reduce your positions or make a deposit when you receive a liquidation alert.

In addition, when using intraday margin rates to open new positions, we suggest using a valid stop order to reduce risk.