What happens when eToro margin-calls you
Leverage is not what ruins an account — the forced sale at the bottom is. This page records what eToro is contractually allowed to do to your positions, taken from the document eToro (Europe) Ltd (Cyprus, CySEC 109/10) publishes, not from marketing copy.
Who and what this policy covers
Applies to eToro (Europe) Ltd (CySEC 109/10, registration number HE 200585). eToro's other entities — UK, Australia, Seychelles, Middle East and Singapore — publish their own terms, which differ from these. Negative balance protection applies to retail clients; professional clients are not subject to these restrictions.
“The money available as margin on a position, cannot equal less than 50% of the money that you might lose on that open position at any time.”
Does eToro warn you before closing your positions?
Partly. eToro (Europe) Ltd (Cyprus, CySEC 109/10) closes retail positions automatically at the regulated threshold; the close-out is a rule, not a discretionary call from a dealer.
At what level does eToro start closing positions?
At 50% of the required margin — and that is not eToro (Europe) Ltd (Cyprus, CySEC 109/10)'s choice. It is the level regulators mandate for retail accounts, so every EU-regulated broker uses the same number. It is not a point of difference between brokers.
Can you lose more than you deposited with eToro?
Not as a retail client of eToro (Europe) Ltd (Cyprus, CySEC 109/10) — negative balance protection caps your loss at the account balance. That protection is tied to retail classification: if you ask to be reclassified as a professional client, it goes away.
One qualification: eToro (Europe) Ltd states this protection for CFD trading specifically, not for everything held in the account.
Verified 2026-08-31 · Source document
Frequently asked questions
Does eToro warn you before closing your positions?
At what level does eToro start closing positions?
Can you lose more than you deposited with eToro?
How we verified this review
Every fact below is verified against primary sources. We refresh on a schedule and on reader feedback.