Margin Call
A margin call is a broker notification triggered when a trader's account equity falls below the required maintenance margin, risking position liquidation.
What it means in practice
A margin call occurs when a trader's account equity drops below the minimum margin requirement set by the broker or prop firm. It is a risk management mechanism that warns the trader to either deposit additional funds or close positions before the broker forcibly liquidates open trades. In leveraged trading, margin calls happen when market moves against the trader deplete the account balance faster than unleveraged positions would.
For affiliate programs, margin calls are an indirect but important factor. Traders who receive frequent margin calls tend to have shorter account lifespans — they either blow through their capital or become discouraged and stop trading. This affects LTV for affiliates on RevShare or lot-based commission models, since the referred trader stops generating volume.
Understanding margin call mechanics also matters for prop trading affiliates. In evaluation phases, margin calls are often tied to daily loss limits or drawdown rules. A trader who hits the margin call level may fail the challenge entirely, which means no funded account and, in programs with repeat-purchase attribution, potentially more challenge fee revenue as the trader retries.
How Margin Call works across industries
See how margin call is applied in the verticals Track360 supports, from qualification logic and payout structure to the operational context behind each model.
How Track360 handles this
Track360 provides operators with real-time reporting on trader activity and account status, enabling early identification of at-risk accounts. This data helps IB programs and affiliate managers understand trader retention patterns and adjust their recruitment and support strategies.
Frequently Asked Questions
Common questions about margin call, how it works in affiliate programs, and where it shows up across Track360's supported verticals.
A margin call is a notification from a broker that a trader's account equity has fallen below the required margin level. The trader must deposit additional funds or close positions, or the broker may liquidate open trades to prevent further losses.
Related Terms
Leverage
Leverage allows traders to control a larger position size with a smaller capital outlay, amplifying both potential gains and losses proportionally.
Drawdown
Drawdown is the maximum loss a trader is allowed to incur -- either in a single day or cumulatively -- before their challenge or funded account is terminated by the prop trading firm.
Daily Loss Limit
A daily loss limit is the maximum amount a trader can lose in a single trading day before their account is suspended or failed in a prop firm evaluation.
Funded Account
A trading account provided by a proprietary trading firm to a trader who has passed an evaluation challenge, allowing them to trade with the firm capital under defined risk rules.
Trading Volume
Trading volume is the total amount of trading activity -- measured in lots or monetary value -- generated by a trader or group of traders over a given period.
Evaluation Phase
An evaluation phase is a structured assessment period in prop trading where traders must meet defined profit targets and risk management rules within a set timeframe to qualify for a funded trading account.
Margin Level
Margin level is the ratio of equity to used margin in a forex trading account, expressed as a percentage, that determines ability to open new positions.
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