Risk

What is Margin call?

By the verify.trading team · Last reviewed · How we write

A margin call is a broker warning, or an automatic closure of positions, when your account equity falls too far below the margin needed to hold them.

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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