// 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.

"The trader ignored the margin call and was automatically stopped out of all trades."

Margin is the portion of your account balance that the broker "locks away" as collateral to keep your leveraged position open.

Borrowed capital from your broker that lets you control a position larger than your deposit — amplifying both profits and losses equally.

A market condition where prices are rising or expected to rise.

A market condition where prices are falling or expected to fall.

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