# CFD margin call

**URL:** <https://community.trading212.com/t/cfd-margin-call/9535>\
**Category:** ⚖ Active trading\
**Created:** [June 12, 2020, 9:04am UTC](https://community.trading212.com/t/cfd-margin-call/9535 "2020-06-12T09:04:26Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![AlexAB](https://avatars.discourse-cdn.com/v4/letter/a/ac8455/32.png) [@AlexAB](https://community.trading212.com/u/AlexAB)\
**Post date:** [June 12, 2020, 9:04am UTC](https://community.trading212.com/t/cfd-margin-call/9535/1 "2020-06-12T09:04:26Z")

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Hello, I already posted this post in the “help” section but no proper answers (just useless information).  
I need a quick clarification: when trading with CFD the “margin call” and “position will close” are set-up at 45% and 25% of the INITIAL account value or of something else?  
E.g. if my INITIAL account value is £10,000 and I bought X number of shares for a long position and the CURRENT account value is now £3,500 (then going against my long position), does it mean that I already passed the “margin call” of £4,500 (45% of the INITIAL account value) and going closer to reach the “position will close” of £2,500 (25% of the INITIAL account value)?  
Then if I deposit extra £10,000, and the CURRENT account value becomes £13,500, are the “margin call” and “position will close” still at 45% (£4,500) and 25% (£2,500) of the INITIAL account value of £10,000 or did they change?  
Thanks!!

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**Author:** ![David](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/david/32/39_2.png) [@David](https://community.trading212.com/u/David)\
**Post date:** [June 12, 2020, 9:16am UTC](https://community.trading212.com/t/cfd-margin-call/9535/2 "2020-06-12T09:16:24Z")

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@AlexAB Think of this way - you get stopped out when account funds = margin / 2 (invested funds / 2).

Balance = £10,000, you invest £10,000 → if you lose £5,000 you get stopped out.

Balance = £10,000, you invest £1,000 → lose £9,500 → stop out.

There’s a ton of information & calculation examples here:

> [@CFD margin calls](https://community.trading212.com/t/cfd-margin-calls/2614/16):
>
> @dropbrick There are simpler ways to think about this. As a general rule of thumb, if you have $1,000 in your account & you’ve invested all of the $1,000, your margin bar is exactly at 50%. If your account balance should drop to 50% of the invested funds ($1,000 margin), then you’d get stopped out. You have 50K, you buy 10 BTC at $7k with 1:2 leverage. Thus, you’re gonna need 10 x 7,000 / 2 in margin = 35K. Going by the over 50% formula -\> [50K / (50K +35K)] x 100 = approx. 58% To receive a m…

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**Author:** ![AlexAB](https://avatars.discourse-cdn.com/v4/letter/a/ac8455/32.png) [@AlexAB](https://community.trading212.com/u/AlexAB)\
**Post date:** [June 12, 2020, 9:43am UTC](https://community.trading212.com/t/cfd-margin-call/9535/3 "2020-06-12T09:43:00Z")

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> [@David](#):
>
> account funds = margin / 2 (invested funds / 2)

in your formula are you sure that at the denominator is “2\*(invested funds/2)”?  
Shouldn’t it be “1/2\*(invested funds/2)”?