What is Margin Call?
A margin call is a demand from your broker to add funds or reduce positions when your account equity drops below the maintenance margin. If you do not meet it in time, the broker can liquidate part or all of your positions, often at unfavorable prices. Margin calls usually hit during sharp moves, exactly when prices are worst.
Why Margin Call matters
It can force you out of positions at the worst moment, turning a paper loss into a realized one you did not choose.
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