Margin Call
Also known as: margin warning, maintenance call, margin level warning, margin alert
What is it?
A margin call is your broker's warning that account equity has fallen too close to the margin reserved for your open positions, and that you must add funds or reduce exposure. It is triggered by a ratio, not by a loss in dollars. Margin level is equity divided by used margin, expressed as a percentage.
- Stop-out - broker closes
- Margin call
- Healthy headroom
A $5,000 account holding one EUR/USD lot on $3,617 of margin starts at 138 percent. After 145 pips against it, equity is $3,550 and the level has fallen to 98 percent - already through the typical 100 percent call threshold. Another 174 pips, and equity of about $1,809 hits the 50 percent stop-out, where the broker closes the position itself.
Because it is a ratio, there are two ways to raise it: increase equity by depositing, or reduce used margin by closing something. Closing a different position works just as well arithmetically - which is worth knowing, because the stop-out below the call is automatic, executes at whatever the market is showing, and is not a negotiation.
Why it matters: A margin call is triggered by a ratio rather than a loss amount, so it can arrive well before the round-number drawdown you were watching for.
Margin level % = (equity / used margin) x 100
Below the stop-out level the broker closes your positions for you, at whatever price the market is showing, regardless of your plan.
Real-world example
A $5,000 account holding one EUR/USD lot on $3,617 of margin starts at a 138% margin level; 145 pips against it drops the level to 98%, and 319 pips triggers a 50% stop-out.
How SignalBots handles it
SignalBots signals carry a defined stop-loss, so the exit is a level you chose in advance rather than a stop-out your broker executes on your behalf. See /risk-warning.
Pro tip
Watch margin level as a percentage in your platform rather than floating profit and loss in currency - the percentage is the number your broker actually acts on.
Common pitfalls
Depositing more funds to hold a losing position through a call. It raises the ratio but leaves the original idea untested and the exposure unchanged.
Frequently asked questions
What margin level triggers a call?
Most retail brokers warn at 100 percent and stop out at 50 percent, but both numbers are set by the broker and differ between them. Find your account's two thresholds before you need them, not during a drawdown.
Does a margin call close my trades automatically?
The call itself is a warning. The automatic closing happens at the lower stop-out level, and it usually starts with the largest losing position. In a fast market both can be crossed within the same minute.
How can I raise the margin level quickly?
Deposit funds to raise equity, or close a position to release used margin - the ratio improves either way. Closing part of an oversized position often does more than a small deposit, because it cuts the denominator and the risk together.
Can a stop-loss prevent a margin call?
It caps the loss on that position at a level you chose, which usually keeps the ratio well above the threshold. But a stop is not guaranteed to fill at its level in a gap, so it reduces the risk rather than removing it.
Is a margin call the same as losing everything?
No. It is a warning at a ratio, and the stop-out below it closes positions while equity is still positive. Losses beyond that point are only possible in a gap, which is where negative-balance protection matters.
Trading involves substantial risk of loss. Historical and backtested results do not guarantee future performance. Read the full risk warning.
