Glossary
Margin call: meaning, example and why it matters
A demand from a broker to add money or close positions because losses have reduced your account below the required margin. Brokers can close positions without waiting for you.
Worked example
An account of ₹1,00,000 has positions that require ₹80,000 of margin. Losses cut the account to ₹78,000, below the requirement, so the broker asks for about ₹2,000 more or closes positions.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
A margin call is how a broker enforces the minimum balance, and it can force a position to close at a bad moment.
Related terms
See it in practice
Frequently asked questions
Can a broker close my position without asking?
Brokers usually reserve that right in their terms, so read them before using leverage.
Is this page investment advice?
No. Margin call is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.