Margin Call

A Margin Call is a formal demand issued by a broker to a trader, typically in leveraged markets like Foreign Exchange (FX), requiring the immediate deposit of additional funds to bring the trading account's equity back up to the minimum maintenance margin level, thereby preventing the forced liquidation of open positions. This critical event is triggered when market movements cause the trader's floating losses to deplete the account's available equity below a pre-defined threshold, signaling insufficient collateral to support the current risk exposure.