A margin call is a warning from your broker that your account equity has fallen to a critical level relative to the margin being used. It means your open positions are consuming too much of your available capital, and you need to either deposit more funds or close positions to reduce exposure. If you do not act, the broker may begin closing positions automatically (stop-out).
You have $1,000 in your account with open trades requiring $800 in margin. The market moves against you and your equity drops to $400 (50% margin level). The broker issues a margin call, warning you to add funds or reduce positions.
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