Margin Call

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.