⚠️ What is a Margin Call?
A Margin Call occurs when your account equity falls below the required margin level needed to maintain open positions.
When this happens, you may be required to:
Deposit additional funds, or
Reduce or close open positions
If no action is taken, positions may be automatically closed to prevent further losses.
📊 Why does a Margin Call happen?
A margin call is typically triggered when:
The market moves against your open trades
Your equity decreases due to floating losses
Your margin level falls below the broker’s required threshold
📌 Key Formula
Margin Level = (Equity ÷ Used Margin) × 100%
When the margin level drops to a certain percentage, a margin call may be triggered.
If your margin level falls below 20%, your positions may begin to close automatically.
⚠️ This content is provided for informational purposes only and does not constitute investment advice. Trading with leverage involves risk.
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