Trading Calculators

Margin Call Price Calculator

If you bought on margin, check in advance how far the stock price can fall before you face a collateral shortfall and forced liquidation.

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Enter your values and press Calculate

Forced liquidation (collateral shortfall) price

Current collateral ratio

Cushion from current price

Shares held

Margin trading risk

Know about forced liquidation in advance, and you can avoid it

If your collateral ratio falls below the maintenance ratio, you are asked to post additional collateral, and if you fail to do so by the deadline, the broker forcibly sells at a price close to the market price.

Enter your funding
Enter your own money, the margin loan amount, the purchase price and the current price.
Check the maintenance ratio
It reflects the maintenance margin ratio (usually 140%) of the broker and stock, and the interest.
Check your cushion
See how many more percent the price can fall from the current level before a collateral shortfall, and prepare for it.

Collateral ratio = (market value of held stocks + additional collateral) / (loan amount + unpaid interest) Shortfall price = (maintenance ratio × (loan amount + interest) − additional collateral) / quantity held

When a collateral shortfall occurs, you usually must post additional collateral by the next business day, and if you fail to, a forced liquidation order at around the daily lower price limit may go out before the market opens on the following business day. For unsettled-balance trading (misu), if you do not pay by the settlement date (T+2), the position is immediately subject to forced liquidation. Detailed rules differ by broker.

FAQ

What does a 140% maintenance margin ratio mean?

It means the collateral value must stay at 1.4 times the amount borrowed or more. If you borrowed KRW 10 million, a collateral shortfall occurs when the market value of your stocks falls below KRW 14 million.

When is forced liquidation carried out?

It differs by broker, but generally, if you do not post additional collateral by the set deadline after a collateral shortfall (usually 1 to 2 business days), forced liquidation is carried out at the market open. The sell orders may even be placed at around the daily lower price limit relative to the previous close.

How can I avoid forced liquidation?

Your collateral ratio goes up if you add cash or other stocks as extra collateral, or sell part of your holdings yourself to repay the loan. Keeping your margin loan share low in the first place is the surest way.

Results are estimates based on your inputs and simplified assumptions, and are for reference only, not a basis for investment decisions.