CFD margin call

[David]

@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

@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…