Orders and trading · updated October 21, 2026
What is a margin call and what should you do when you get one
A margin call is your broker asking you to add money or sell some positions, because the value of your collateral has fallen below the required minimum. If you do nothing, the broker closes the positions itself, at market prices.
How it works
The broker keeps calculating what your positions are worth and how much you owe. When your share drops below the maintenance margin, you get the call. For CFDs in the EU, the ESMA rule requires positions to be closed automatically when your money falls to 50% of the required margin, so you often have no time to react.
Worked example
You bought $10,000 of stock with $5,000 of your own. The maintenance margin is 30%. The price falls until the position is worth $7,000.
If the price keeps falling, the amount required grows. The broker can sell without warning you again.
Worth knowing
The simplest way to avoid a margin call is to use no leverage, or very little.
When a margin call can fool you
Selling at the bottom: the forced sale comes exactly when prices are low, and the loss becomes final. You can lose more than you deposited in classic margin accounts, outside the EU's CFD protection. Short deadlines: some brokers give you hours, not days.
Related terms
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Questions about a margin call
What do I do when I get a margin call?
You have three options: deposit money, sell part of your positions to shrink the loan, or let the broker close them. The first two, done quickly, are the safest.
These explanations are for information only. They are not a recommendation to buy or sell.
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