We found 11 online brokers that are appropriate for Trading Margin Call.
Before understanding a margin call definition, it is important to know what the so-called 'margin' in financial trading actually is. A margin is the minimum capital required to open a trading position in order to get the full exposure of the traded volume. Let's say the margin is 10 percent. This means that traders only need to pay 10 percent of the volume they want to trade. The remaining 90 percent is borrowed by the broker.
There are basically two types of margins. One is the initial margin and the other is the maintenance margin. The first, is the minimum amount required to open a position. The second, is a variation margin, which means the broker can ask for additional funds if the margin moves against the trader. This is to ensure the account has enough funds with respect to the current value of the position. It helps the broker cover up any losses, should they arise. These are mostly in leveraged products, like CFDs and spread bets.
Now let us move on to margin call definition. A 'margin call' is an alert sent by the broker or dealer warning the trader that the margin has fallen below the required amount; and hence, more funds are required to keep the position open. So, in simple terms, it is a call to deposit more funds into the account. If not, the trader can opt to close the position in order to lower the required maintenance margin.
While on the topic of margin call definition, it is also important to note that such alerts are used in describing the status of a trader's account.
In standard trading accounts, the margin call can be triggered if the equity drops below fifty percent of the required margin.
In professional trading accounts, four scenarios can lead to the automatic closure of positions. These are listed below:
However, the above situations differ from one broker to another.
A trader should ensure that they have ample funds in their account to cover the margin-- as well as any losses that could arise. Missing this requirement could trigger a margin call.
Spread betting and CFD accounts are independently margined. This means funds in one account cannot cover the requirements or losses of another account.
Let’s say a trader buys £100,000 of 'Company X' by using £50,000 of capital, or margin money. He/she borrows £50,000 from the broker, who seeks a maintenance margin of 25 percent. The equity of the trader was 50 percent during the time when buying the shares. The calculation of the equity is shown below:
Equity as Percentage = (Market Value of Securities - Borrowed Funds) / Market Value of Securities.
(£100,000 - £50,000) / £100,000 = 50%
Hence, this is more than the maintenance margin of 25 percent. If after about two weeks, the purchased securities drop to £60,000- this will lead to the equity falling to £10,000.
(Market value of £60,000 - borrowed funds of £50,000 => £60,000 - £50,000) / £60,000
Now the funds are below the maintenance margin; therefore, a margin call is triggered, asking the trader to deposit £5,000 or more to meet the required maintenance margin.
In this article, we tried to accurately write the margin call definition. Before wrapping up, it is important to note that depositing more than the margin could be a wise move to avoid a margin call. Also, tools like stop loss can be used to overcome the shortfalls of margin.
Those who want to avoid such margin calls are advised to avoid high leverage; but of course, such a move will require more capital than it would to trade with higher leverage.
Moreover, for traders who want to avoid investing more capital in the same trade, closing a position could prove a better option than adding more funds.
Apart from all these, experts in financial trading suggest building up a strategy before opening a position. They add that one should be well informed about the extent of investing money in a trade, and to know when to close positions in order to avoid margin calls.
We have conducted extensive research and analysis on over multiple data points on Margin Call Definition to present you with a comprehensive guide that can help you find the most suitable Margin Call Definition. Below we shortlist what we think are the best Margin Call after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching Margin Call Definition.
Selecting a reliable and reputable online Margin Call trading brokerage involves assessing their track record, regulatory status, customer support, processing times, international presence, and language capabilities. Considering these factors, you can make an informed decision and trade Margin Call more confidently.
Selecting the right online Margin Call trading brokerage requires careful consideration of several critical factors. Here are some essential points to keep in mind:
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
When choosing a broker for Margin Call trading, it's essential to compare the different options available to you. Our Margin Call brokerage comparison table below allows you to compare several important features side by side, making it easier to make an informed choice.
By comparing these essential features, you can choose a Margin Call broker that best suits your needs and preferences for Margin Call. Our Margin Call broker comparison table simplifies the process, allowing you to make a more informed decision.
Here are the top Margin Call.
Compare Margin Call brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a Margin Call broker, it's crucial to compare several factors to choose the right one for your Margin Call needs. Our comparison tool allows you to compare the essential features side by side.
All brokers below are Margin Call. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Margin Call that accept Margin Call clients.
Broker | IC Markets | Roboforex | eToro | XTB | XM | Pepperstone | AvaTrade | FP Markets | EasyMarkets | SpreadEx | FXPro |
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Regulation | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | RoboForex Ltd is regulated by the FSC, license 000138/437, reg. number 128.572. RoboForex Ltd, which is an (A category) member of The Financial Commission, also is a participant of its Compensation Fund | FCA (Financial Conduct Authority) eToro (UK) Ltd (FCA reference 583263), eToro (Europe) Ltd CySEC (Cyprus Securities Exchange Commission), ASIC (Australian Securities and Investments Commission) eToro AUS Capital Limited ASIC license 491139, CySec (Cyprus Securities and Exchange Commission under the license 109/10), FSAS (Financial Services Authority Seychelles) eToro (Seychelles) Ltd license SD076 | FCA (Financial Conduct Authority reference 522157), CySEC (Cyprus Securities and Exchange Commission reference 169/12), FSCA (Financial Sector Conduct Authority), XTB AFRICA (PTY) LTD licensed to operate in South Africa, KPWiG (Polish Securities and Exchange Commission), DFSA (Dubai Financial Services Authority), DIFC (Dubai International Financial Center), CNMV (Comisión Nacional del Mercado de Valores), KNF (Komisja Nadzoru Finansowego), IFSC (Belize International Financial Services Commission license number IFSC/60/413/TS/19) | Financial Services Commission (FSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Australian Securities and Investments Commission (ASIC), ASIC (406684), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), The Financial Services Agency (JAPAN FSA), Financial Futures Association of Japan (FFAJ), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), Polish Financial Supervision Authority (KNF), Israel Securities Association (ISA), British Virgin Islands Financial Services Commission (BVI), BVI (SIBA/L/13/1049), Central Bank of Ireland | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), FSCA (FSP Number 50926), Capital Markets Authority (CMA), Securities Commission of the Bahamas (SCB) | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), British Virgin Islands Financial Services Commission (BVI) | Financial Conduct Authority (FCA) | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Financial Sector Conduct Authority (FSCA), Securities Commission of the Bahamas (SCB) |
Min Deposit | 200 | 10 | 100 | No minimum deposit | 5 | 200 | 100 | 100 | 100 | 1 | 100 |
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Used By | 180,000+ | 1,000,000+ | 30,000,000+ | 1,000,000+ | 10,000,000+ | 400,000+ | 300,000+ | 10,000+ | 142,500+ | 10,000+ | 1,866,000+ |
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Platforms | MT4, MT5, Mirror Trader, Web Trader, cTrader, Windows, Mac, iOS, Android | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, MT5, TradingView, DupliTrade, myFXbook, Mac, Web Trader, cTrader, Tablet & Mobile apps | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, DupliTrade, ZuluTrade, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, MT5, cTrader, IRESS, Mac, Web Trader, Tablet & Mobile apps | MT4, MT5, Web Trader, TradingView, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, cTrader, Tablet & Mobile apps |
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Risk Warning | Losses can exceed deposits | Losses can exceed deposits | 76% of retail investor accounts lose money when trading CFDs with this provider. | 76-85% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 74-89 % of retail investor accounts lose money when trading CFDs | 71% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | Your capital is at risk | Losses can exceed deposits | 75.78% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider |
Demo |
IC Markets Demo |
Roboforex Demo |
eToro Demo |
XTB Demo |
XM Demo |
Pepperstone Demo |
AvaTrade Demo |
FP Markets Demo |
easyMarkets Demo |
SpreadEx Demo |
FxPro Demo |
Excluded Countries | US, IR, CA, NZ, JP | AU, BE, BQ, BR, CA, CW, CZ, DE, ES, EE, EU, FM, FR, FI, GW, ID, IR, JP, LR, MP, NL, PF, PL, RU, SE, SJ, SS, SL, SI, TL, TR, DO, US, IT, AT, PT, BG, HR, CY, DK, FL, GR, IE, LV, LT, MT, RO, SK, CH | ZA, ID, IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, SA, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, MG, MK, KZ, GD, FJ, PT, BB, BM, BS, AG, AI, AW, AX, LB, SV, PY, HN, GT, PR, NI, VG, AN, CN, BZ, DZ, MY, KH, PH, VN, EG, MN, MO, UA, JO, KR, | US, IN, PK, BD, NG , ID, BE, AU | US, CA, IL, IR | AF, AS, AQ, AM, AZ, BY, BE, BZ, BT, BA, BI, CM, CA, CF, TD, CG, CI, ER, GF, PF, GP, GU, GN, GW, GY, HT, VA, IR, IQ, JP, KZ, LB, LR, LY, ML, MQ, YT, MZ, MM, NZ, NI, KP, PS, PR, RE, KN, LC, VC, WS, SO, GS, KR, SS, SD, SR, SY, TJ, TN, TM, TC, US, VU, VG, EH, ES, YE, ZW, ET | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | US, IL, BC, MB, QC, ON, AF, BY, BI, KH, KY, TD, KM, CG, CU, CD, GQ, ER, FJ, GN, GW, HT, IR, IQ, LA, LY, MZ, MM, NI, KP, PW, PA, RU, SO, SS, SD, SY, TT, TM, VU, VE, YE | US, TR | US, CA, IR |
You can compare Margin Call ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
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