A margin call is a demand from your brokerage to deposit additional cash or securities (or sell positions) when your account equity falls below the maintenance margin requirement. Typical maintenance margin: 25% of total position value. If your equity drops below maintenance, you have a limited window (often 1-3 days, sometimes hours) to meet the call. If you don't, the broker can liquidate positions without your consent at the worst possible prices. Margin calls cascade during market crashes — forced selling drives prices lower, triggering more calls. Avoid using margin for long-term holdings; if you must use margin, keep substantial cushion above maintenance requirements.
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Margin Call
August 22, 2026 · Aditya Gupta
Investing
Related terms
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