Glossary › margin call

Trading glossary · risk

margin call

A message from the trading company saying you must add money now, because losses used up too much of your deposit.

The fuller meaning

A demand to add funds when account equity falls below the maintenance margin; if it is not met, the broker or exchange closes the position. For futures, the call restores the account to the initial margin, and a big move can cost more than the whole deposit.

margin call.

Related words

1% rule · ATR stop · average loss · average win · breakeven · breakeven win rate · correlation · daily loss limit · drawdown · equity curve