A margin call can occur even when your account balance seems sufficient because it is based on your margin level, not just your balance. Margin level takes into account your equity and the used margin for all open positions:
Margin Level (%) = (Equity / Used Margin) × 100
Common reasons for unexpected margin calls include:
- Unrealised losses on open positions reducing your equity
- High leverage magnifying small market movements
- Holding multiple positions that collectively require more margin than expected
- Volatile market conditions causing rapid price swings
Receiving a margin call is a warning to deposit additional funds, reduce position sizes, or close trades to prevent stop-out. Monitoring your margin level regularly helps avoid surprises, even if your account balance looks healthy.
