About the Margin Call Calculator
What is the Margin Call Calculator?
A margin call happens when your account equity falls below the maintenance margin. This calculator finds the exact price that triggers it for a long or short position.
Knowing this price in advance helps you set stop-losses and keep enough funds in your account.
How to use the Margin Call Calculator
- Position (sample: Long)
- Entry Price (sample: 100)
- Quantity (sample: 1,000)
- Initial Margin Deposited (₹) (sample: 20,000)
- Maintenance Margin (% of position value) (sample: 10)
- Press Find Margin Call Price (results also refresh as you type). The result card shows the Margin Call Price, along with Move to margin call, Position value at entry, Initial margin % and Equity at the margin call.
Formula used
Long: P = (Entry × Qty − Initial margin) ÷ (Qty × (1 − m))
- Short = P = (Initial margin + Entry × Qty) ÷ (Qty × (1 + m))
- m = maintenance margin as a fraction of position value
Brokers may square off positions without notice when margin falls short.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Position | Long |
| Entry Price | 100 |
| Quantity | 1,000 |
| Initial Margin Deposited (₹) | 20,000 |
| Maintenance Margin (% of position value) | 10 |
| Result | Value |
|---|---|
| Margin Call Price | 88.8889 |
| Move to margin call | -11.11% |
| Position value at entry | ₹1,00,000 |
| Initial margin % | 20% |
| Equity at the margin call | ₹8,889 |
Tips for using the Margin Call Calculator
- Add funds or cut position size before the margin call price is near.
- Volatile markets can gap past the margin call price.