Key Takeaway
A margin call occurs when your account equity falls below the maintenance margin requirement. You must either deposit more funds or close positions , failure to do so triggers automatic liquidation by the broker.
Margin Call Calculator
Determine the stock price that triggers a broker margin call.
Margin Call Trigger Price
₹666.67
If stock falls below this price, a margin call is issued.
Broker Loan Amount (per share)
₹500.00
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Frequently Asked Questions
What triggers a margin call?
A margin call is triggered when the value of securities in a margin account drops below the broker's required maintenance margin, usually due to falling stock prices.
What happens if I ignore a margin call?
If you do not deposit additional funds or sell assets to meet the margin call, your broker has the legal right to liquidate (force sell) your stocks at the current market price without your permission.
How can I avoid margin calls?
Avoid using maximum leverage, maintain a buffer of cash in your account, and always use stop-loss orders to cut losing positions before they threaten your maintenance margin limits.
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