What is a Margin Call?

A margin call occurs when your account balance falls below the required margin level for your open positions.

How It Works:

1. You open a leveraged position requiring $1,000 margin
2. Your account balance: $1,200
3. Position moves against you, causing losses
4. Account balance drops to $800 (below required $1,000)
5. You receive a margin call notification

What to Do:

• ✅ Deposit more funds to meet margin requirements
• ✅ Close some positions to reduce margin usage
• ✅ Reduce position sizes

⚠️ Warning: If you don't act on a margin call, your positions may be automatically closed (stop-out) to prevent further losses.

Prevention:

• Don't use maximum leverage
• Keep adequate balance buffer
• Use stop-loss orders
• Monitor margin levels regularly