Work out margin call price instantly with clear inputs, formula shown and shareable results.
A margin call comes when equity falls to the maintenance requirement. Since the loan per unit is fixed, the trigger price is that loan divided by one minus the maintenance margin — the tighter the initial margin, the closer the call.
Margin call price
Call price = P(1 - initial margin) / (1 - maintenance margin)
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Put up more initial margin or reduce the position. Both cut the borrowing per unit.
The broker liquidates holdings at market, usually with no discretion over which positions go first.