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Risk

Margin call — definition & meaning

A broker warning that your equity is too low to support open trades.

A margin call happens when losses push your equity below the margin needed to keep your positions open. The broker warns you to add funds or reduce exposure.

If the account keeps falling, the broker will begin closing positions automatically at the 'stop-out' level to protect itself. A margin call is a clear sign you were over-leveraged.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

Related terms

Margin
The deposit a broker holds to keep a leveraged position open.
Leverage
Borrowed exposure that lets you control a large position with a small deposit.
Equity
Your account balance adjusted for the profit or loss on open trades.
Negative balance protection
A safeguard ensuring you can't lose more than your account holds.
Free margin
The money in your account still available to open new trades.
Stop-loss
A preset order that closes a losing trade to cap your loss.

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