Glossary - ChicksX

Margin Call is a broker's demand for more funds when your account's equity falls below required levels.

Margin Call is a notification from your broker requiring you to deposit additional funds to maintain your trading positions. When you trade on margin, you borrow funds to increase your buying power. If the market moves against your position, your account's equity may fall below the maintenance margin level set by the broker. At this point, you receive a margin call. If you do not add funds, the broker may liquidate your positions to cover potential losses. Understanding margin calls is crucial for managing risk in leveraged trading, as it helps prevent significant financial losses.