What it is — Margin Call and Stop-Out
A margin call is the warning: your margin level (equity ÷ used margin, shown as %) has fallen to a threshold where the broker flags danger — historically a literal phone call, now a platform alert and email.
Stop-out is the execution: margin level hits the broker's hard floor (commonly 20–50%) and the platform force-closes your worst position first, then the next, until margin level recovers. You don't choose which trade dies — the biggest loser does.
Why it matters — Margin Call and Stop-Out
- It's forced risk management, executed at the worst possible price — the whole point is never to experience it.
- Levels differ by broker and entity: check Specification/legal docs before choosing leverage tiers.
- Oversized positions are the cause in nearly every case — margin calls are sizing failures, not bad-luck events.
The countdown, in real numbers
Reuse the site’s standing margin example: $1,000 equity, 0.1 lots of EURUSD at 1:30 — used margin $374.31, margin level 267% (equity ÷ used margin). Losses drag equity down; the level falls with every pip. At $150 equity the level is 40%; most brokers begin warning below 100% and force-close somewhere between 20% and 50% (their number is in the contract, not the marketing). At the stop-out the broker closes your largest loser first, at market, and the loss becomes realized — the position, and the choice, are gone. See the margin page for how used margin is computed.
Three habits that make margin calls nearly impossible
First, size so used margin stays a small fraction of equity — under 10–20% per position: at 1:30 that caps positions near 0.25 lots on this $1,000 account, and far less across several pairs. Second, watch correlation: long EURUSD, long GBPUSD and short USDCHF are nearly one big dollar bet — three safe-looking positions can be one account-killing one, and the margin call sees the sum, not the stories. Third, respect the calendar: margin calls rarely arrive in calm hours; they arrive on gap-throughs around red releases, when equity falls faster than the level can warn (check the economic calendar before stacking exposure). A margin call is never the market’s verdict on your strategy — it is arithmetic you declined to do in advance.
Frequently asked questions — Margin Call and Stop-Out
Is a margin call a fee?
No — it's a warning, costing nothing by itself. The expensive part is what usually follows: stop-out at unfavorable prices.
What margin level triggers a margin call?
Varies by broker: warnings often start below 100% (equity below used margin), and forced stop-outs typically fire between 20% and 50%. The binding number is in your account contract — know it before you need it.
Can I reopen a position closed by a margin call?
No — the close is final and the loss is realized at the fill price. Anything you open afterwards is a new trade, which is exactly why pre-set size caps are cheaper than post-call revenge.
How do I calculate my margin level?
Margin level = equity ÷ used margin × 100. $2,000 equity with $400 used = 500%. Below 100%, equity can't cover used margin — you're in the red zone.