A margin call is an important risk alert in trading. It signals that your margin level has dropped close to the stop-out threshold, and immediate action may be required to avoid automatic closure of your open positions.
When Does a Margin Call Happen?
At Bullwaves, the margin call level is set at 50%. This means that if your account's margin level drops to or below 50%, you’ll receive a warning notification. At this point, it’s your responsibility to either add more funds or close some positions to bring the margin level back to a safer level.
Failing to act may result in a stop-out, where the system begins to close your trades automatically, starting with the ones with the largest losses.
How to Calculate Margin Level
To monitor your status and avoid a margin call, use this formula:
Margin Level = (Equity / Used Margin) × 100
Equity
is your current balance including unrealized PnL.
Used Margin
is the margin tied up in open positions.
For example, if your equity is $250 and your used margin is $500:
(250 / 500) × 100 = 50% → You’re now at the margin call level.