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Troubleshooting5 min read · beginner

Why did I get a margin call? What it is and how to respond

A margin call is a warning that your account is running low on usable funds. Here is what triggers it and how to act calmly.

Important: This is educational content only, not investment advice. Trading involves substantial risk of loss. Never trade money you cannot afford to lose.

What a margin call is

A margin call is a warning that your losing positions have eaten into the funds backing them. Your 'margin level' (equity divided by used margin, as a percentage) has fallen to the broker's call threshold. It is a signal to add funds or reduce risk before things get worse.

It is not yet a forced closure — that is the stop-out, which comes at a lower level if you do nothing.

Why it happened

Positions moved against you and unrealised losses shrank your equity. You were over-leveraged — too large a position for the account. You had several correlated trades all losing at once. Or swap and other costs quietly reduced your equity over time.

How to respond

Do not panic-add money to defend a bad trade. First, look at whether the positions still make sense; often the right move is to reduce or close the weakest ones to restore your margin level. Cutting size is usually safer than adding funds to a losing position.

If you do add funds, add only what you can afford to lose, and understand you are increasing your exposure, not fixing the underlying trade.

How to prevent it

Use modest leverage, size positions so a normal adverse move cannot threaten your account, keep free margin in reserve, and use stop-losses. Margin calls are almost always a symptom of positions that were too big.

Broker's fault or yours?

A margin call is the mechanics working as intended, driven by your own position sizing — it is on your side. It is best treated as a hard lesson about leverage rather than something to blame the broker for.

Important: This is educational content only, not investment advice. Trading involves substantial risk of loss. Never trade money you cannot afford to lose.

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