Essential

Margin Call

A broker's demand for additional funds when account equity falls below required margin levels.

Definition

A margin call occurs when your account equity falls below the required margin level. The broker demands you deposit more funds or close positions. If ignored, the broker may automatically close (stop out) your positions to protect against further losses.

How It Works

Margin level drops below threshold (e.g., 100%)
Broker issues margin call warning
Trader must add funds or close positions
Stop out level (e.g., 50%) triggers automatic closures

Trading Tips

Set alerts before margin call levels

Use stop losses to prevent margin calls

Keep sufficient free margin as buffer

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