Margin call
A warning, or a block on new trades, when your margin level falls to the broker’s threshold, often 100%.
In practice
An account with $2,000 equity and $2,000 of used margin is at a 100% margin level. Many brokers will block new trades at that point, and start closing positions if equity falls to about half of used margin.
Depositing more money to avoid a margin call on a losing trade. That usually means the position was too large to begin with.
Related terms
Stop-out
The margin level at which a broker starts closing your positions…
Margin level
Equity divided by used margin, as a percentage. Brokers use it to…
Leverage
Borrowed exposure that lets you control a position larger than…
Overleveraging
Opening positions too large for the account, so a normal move…
Balance
Your account value from closed trades, deposits and withdrawals,…
Broker
The firm that gives you access to the market, holds your funds and…