A margin call is the warning that your leveraged positions are in trouble and your account needs more funds — or positions will be closed. Understanding it is essential before you ever use leverage.
What margin is
When you trade with leverage, you put up a fraction of the position's value as margin (collateral). The broker effectively lends you the rest. Your margin must stay above a minimum to keep the position open.
What triggers a margin call
If the market moves against you, your losses eat into your margin. When your equity falls below the broker's maintenance margin requirement, you get a margin call — a demand to deposit more funds or reduce positions.
What happens if you don't act
If you don't add funds, the broker will forcibly close your positions (a liquidation) to limit their risk — often at the worst possible moment, locking in the loss. In crypto this happens automatically and fast.
How to never get one
- Use low leverage — or none. Lower leverage keeps your margin buffer large.
- Always use a stop-loss that triggers well before margin runs out, so you exit on your terms.
- Size by risk, not by the maximum the broker allows — the position-size calculator keeps risk fixed.
- Don't add funds to defend a losing trade — that's throwing good money after bad.
A margin call is the market telling you the position was too big. The fix is never "add more money" — it's "use less leverage."
Education only — not financial advice.