Margin call has a particular significance in relation to IG's platform. Here, we define margin call in general investing and explain what it means to you when trading with IG.
A margin call is the term for when a broker requests an increase maintenance margin from a trader, in order to keep a leveraged trade open.
Margin trades – such CFDs – require a certain amount of funds to remain open. If a trade loses money and the funds in your account are no longer enough to keep the position open, your provider will ask you to top up your account. This is a margin call.
If you top up funds, the position will remain open. If not, your provider may close the position and any losses incurred will be realised.
CFDs are leveraged products. This means they require margin and will incur a margin call if funds are insufficient.