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Margin call

A margin call is your broker's alert when your margin level drops below a set threshold: your capital barely covers your positions any more.

Historically, a margin call was a phone call asking you to deposit funds. Today it is an automatic alert on the platform when your margin level falls below a threshold, often 100%.

At that point you have three options: deposit money, close some positions or let it run. The third is the most dangerous: if the market keeps going against you, the stop out will close your positions for you.

A margin call is the symptom of excessive exposure or a position without a stop. With sound risk management, it should never happen.

The full lessonMargin, margin call and stop out: what happens when your position losesUsed margin, free margin, margin level, margin call and stop out explained step by step, with a worked EUR/USD example to help you avoid being liquidated.← Full glossary