It means that if your portfolio falls, you are not asked to top it up. You keep paying the interest, the position stays intact, and the lender does not force a sale at the bottom.
That is not true of every leveraged structure — and the difference only shows up on the worst day.
| 100% no margin call | Multiplier (1:2, 1:3) | |
|---|---|---|
| You contribute | Nothing — the loan funds the position | Capital, then borrow 2–3× more |
| If value falls | Nothing is demanded | May be required to pay down |
| Position size | Equal to the loan | Two to three times larger |
| Worst-case moment | You keep paying interest | Money demanded when the position is worth least |
The 100% no-margin-call structure is what we use by default. A multiplier produces a larger position, but it introduces an obligation that arrives on someone else’s timing.
People compare leverage offers on interest rate. The rate is a known, budgetable cost. A margin call is an unknown obligation that arrives at the worst possible moment — and it is what turns a paper loss into a realised one.
If you take one thing from this page
We will not put a client into a callable structure to make the numbers look better. A larger position that can be called is not a better plan; it is the same plan with a trapdoor.
Borrowing to invest involves risk, including the risk that the value of your investment falls while the loan remains payable in full. This page describes how these arrangements work in general and is not a recommendation to borrow or an offer of credit. Suitability depends on individual circumstances.