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Costs & risk

Margin call

A margin call is an alert that your equity has fallen to a set share of the margin your open positions use. At NextTrade, a margin call occurs when your equity drops to 100% of your used margin (a margin level of 100%). It is an alert only: it does not close positions and does not prevent further losses.

Also called: margin call level

Hypothetical example

Hypothetically, open positions use $500 of margin. If losses bring your equity down to $500, your margin level is 100% and you receive a margin call. If losses continue to $250, the stop-out level is reached.

Used in these guides

Costs & risk8 min read
Margin call and stop out: how they work
How margin level is calculated, when a margin call or a stop out happens, and what each one does to your open positions.

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