A margin call occurs when your equity-margin ratio (also known as margin level) falls below the level required to keep your trades open. Learn how margin calls work, when positions may be closed, and what you can do to manage your risk.
A margin call is a notification that your margin level is approaching the minimum required to keep your positions open.
This happens when the market moves against your trades, reducing your available margin.
If your equity drops below 100% of the required margin:
You’ll receive a margin call
You won’t be able to open new trades or place orders
If your equity drops below 75% of the required margin:
You’ll receive another margin call
You still won’t be able to open new trades or place orders
If your equity drops to 50% or less of the required margin, the close-out process begins automatically and positions will start to be closed.
There are two close-out processes when your margin level drops to 50% or less. The one that applies depends on your account.
If you’ve received an email about updates to how positions are closed (subject: ‘Updates to your trading account’), close-out process 2 applies to you. If not, close-out process 1 applies.
Positions are closed progressively until your margin level rises above 50% of the required margin:
All pending orders are cancelled first
All open positions with losses are closed
Remaining open positions on open markets are then closed
Positions are typically closed in full
Positions in closed markets are closed once the market reopens
Positions are reduced step by step to restore your margin level.
Pending orders are cancelled first (earliest first)
Positions are then reduced starting with the oldest
Positions may be partially closed, rather than fully closed
The amount closest to what is needed to restore the required margin is closed
The system aims to bring your ratio back to at least 75%
Positions in closed markets are skipped until markets reopen
You have $3,500 in your account
You open a long position worth $5,000 (50 CFDs at $100)
With a 2:1 margin rate, you commit $2,500, which is a Required Margin value for the position
You have $1,000 remaining as available funds
The example below shows how margin levels change as the market moves.
If your margin level falls below 50%, positions will begin to close automatically. Positions may be closed in full or partially, depending on how your account handles close-out.
If the price falls to $50, your position value decreases to $2,500 (50 CFDs × $50).
Unrealised loss = $2,500
Equity = $3500 - $2500 = $1,000
The required margin adjusts to $1,250.
Your margin level is:
($1,000 ÷ $1,250) × 100 = 80%
At this point, you would receive your first margin call.
If the price falls further to $45, your position value decreases to $2,250 (50 CFDs × $45).
Unrealised loss = $5000 - $2,250 = $2,750
Equity = $3500 - $2500 = $750
The required margin adjusts to $1,125.
Your margin level is:
($750 ÷ $1,125) × 100 = 66.67%
At this point, you would receive another margin call.
Make sure you have enough equity in your account to act as a buffer if markets move against you.
Spread your exposure across different asset types to reduce risk.
Keep an eye on market prices, either manually or by using tools on our platform such as price alerts and watchlists.
Use stop-loss and take-profit orders to help control your exposure.
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1We may attempt to contact you by email when your account is on margin call. However, it is your responsibility to ensure there are sufficient funds in your account at all times to meet your margin requirements. Markets can move quickly, and positions may be closed before we are able to contact you. If your equity drops from above 100% of the required margin to below 50% in a very short period, your positions may be closed without prior notice.
2Basic stop-loss orders are not guaranteed and may be affected by market conditions, including slippage. You can choose to place a guaranteed stop-loss to set a fixed limit on potential losses, which may incur a charge if triggered. For more details, please refer to our charges and fees page.
