// TRADING TERMINOLOGY
What is Margin Call?
A broker's demand that a trader deposit more money to cover potential losses on open positions.
In-Depth Explanation
If you do not meet the margin call, the broker will automatically close your positions (liquidate) to prevent your account from going negative.
Practical Example
"The trader ignored the margin call and was automatically stopped out of all trades."
Related Terms
Master the language of risk
Knowing the terms is just the start. Learning how to apply them is where the edge is found.
Join Drawdown Free