Glossary

What is Margin call?

Risk & strategy

A broker's warning or forced close-out when losses eat into your margin. EU, UK and Australian rules close retail CFD trades once equity falls to half the required margin.

Think of it like: Your phone warning 'battery low' before it switches itself off.
Real example: In March 2021 margin calls hit the investment firm Archegos: forced sales followed and banks lost more than $10 billion.
Lesson: Margin and margin calls Practise it now: Follow the Sun Practise it now: Order Up!

Related words

All 189 words in the glossary