Margin call

Updated 2026-09-20

Definition

A broker warning when free margin falls below a threshold: you can't open new positions and risk having existing ones closed.

Why it matters

It comes from unrealised losses eroding available capital. Avoid it with low effective leverage, stop losses always in place and position size consistent with risk.

Practical example

With margin level at 100% a margin call arrives; if it falls further (often to 50%) a stop out can trigger and positions are closed.

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Full glossary

Educational content, not financial advice. Trading involves risk.