What Is a Margin Call?

Explained

At a margin call you usually cannot open new trades and are asked to deposit funds or reduce positions. The threshold differs between brokers; 100% is common. The best protection is a sensible trade size and a clear stop-loss.

Example

Example with made-up numbersUsed margin is 500 dollars and the margin call is at 100%, so it comes when equity falls to 500 dollars.

Use it in Joymista

• DEMO TRADINGA practice account on the Joymista chart: real prices, no risk

Related terms

• Stop OutA stop out is the broker closing your trades automatically when the margin level falls to…
• Margin LevelMargin level is a ratio that shows how healthy an account is: equity divided by used…
• LeverageLeverage lets you open a trade bigger than your balance by putting up only part of it as…