Risk
What is Margin call?
By the verify.trading team · Last reviewed · How we write
Key points
- Broker closes positions when equity drops too low.
- Retail rules set a minimum close-out level of 50% of margin.
- Small position sizes are the defence.
Margin call explained
For retail CFD accounts, UK and EU rules require brokers to close positions when equity falls to 50% of the required margin, and many brokers act earlier. The exact level is in your broker's terms.
Over-sizing is the usual cause. Keeping each position small enough that a normal adverse move does not threaten your margin is the reliable defence.
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