// 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."

Master the language of risk

Knowing the terms is just the start. Learning how to apply them is where the edge is found.

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