Margin call

A margin call is triggered when the balance of your margin loan exceeds your loan limit by more than the allowed buffer. If the value of your loan security falls, the loan limit falls, and so does the value of the buffer. If the new loan limit drops below your outstanding loan balance by more than the new buffer, you will be subject to a margin call.
A margin call is a call to action, not a penalty

You need to take action
A margin call requires you to:
  • reduce your margin loan balance to below your loan limit plus the buffer, OR
  • increase the value of the loan limit by adding additional approved securities.

If you don't have the funds
If you do not have the funds available to repay part of the loan when a margin call is made, or you are unable to provide additional acceptable securities, there is a risk that you will have to sell your securities at a less than optimal time, which may result in a loss of return.
Woman in forest
Reduce the risk
Take a look at how risk management can reduce the chance of a margin call.
Your options
You have several options, including:
  • repaying part of your loan, or
  • lodging additional acceptable securities, or
  • selling part of the portfolio and using the proceeds to repay part of your loan, or
  • doing a combination of the above.
Find out more about BT's margin lending.
Download a copy of 'Margin lending made easy' (PDF, 557 KB).
Read BT's margin lending case studies.
Find a financial adviser using BT's Adviser Referral Program.
Learn about BT's margin loans.