Margin call

A margin call is a demand for additional funds when adverse price moves reduce account equity below the required level. In futures it usually follows a daily settlement or an intraday check, and the broker can reduce or liquidate positions instead of waiting for the money, which is why a call is a risk event rather than a reminder.

Senzoukria · Glossary · Updated September 2026

Definition

The CFTC glossary defines a margin call as a notice demanding additional funds be deposited when adverse price movements reduce account equity below required levels. In futures, the required level is the maintenance margin at the clearing house level, plus whatever house rules the broker adds.

How a call arises

Losses on open positions are debited as variation margin after each settlement. If equity then sits below maintenance, a call is issued. Brokers also monitor accounts during the day, and in fast markets clearing houses can call for margin intraday.

Continuing an illustrative example with hypothetical figures: a $1,000 account holds one MES with a $900 maintenance level. A 30-point adverse move costs 30 × $5 = $150, leaving $850. The call is for $1,000 − $850 = $150 if the convention is to restore the initial level. If the account cannot meet it in time, the broker can close the position at the market.

What happens next

  • Deposit funds to meet the call.
  • Reduce or close positions so that the remaining requirement fits the equity.
  • Or the broker liquidates, without necessarily waiting for either of the above; the terms are in the customer agreement.

Why it matters for order flow traders

Forced liquidations are market orders, and when many accounts are called at once they add aggressive flow in the direction of the move. That is one way a fast move can feed on itself. For your own account, the lesson is that sizing close to the maximum margin allows turns an ordinary adverse move into a forced exit at the least favourable moment.

In Senzoukria

The application does not compute margin or issue margin warnings. The tools it provides for taking risk off are manual: the flatten control, which cancels working orders and closes positions, and for automation an armed autopilot with its own STOP. These act on the broker account but do not replace the broker's margin monitoring.

Common mistakes

  • Treating the call as a deadline you control; liquidation can come first.
  • Adding to a losing position to 'average down' while under a call.
  • Confusing a prop firm's drawdown breach with a broker margin call; they follow different rules.

In the same section

Sources

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Frequently asked questions

Can my broker close my position without warning?
Customer agreements typically allow the broker to liquidate positions when equity falls below requirements, without waiting for a deposit. The exact terms are in your agreement and your broker's margin policy.
Do prop firm accounts get margin calls?
Evaluation and funded accounts usually replace margin with contract limits and drawdown rules enforced by the firm. Breaching those rules ends or restricts the account under the firm's terms rather than producing a classic margin call.

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