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 as 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.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.