📖 Financial Lexicon Term
What is Margin Call?
A notification from your broker that your account equity has dropped below the required maintenance margin. You must either deposit additional funds or close positions.
Detailed Explanation
A Margin Call is a critical risk warning triggered when your account's Margin Level percentage drops to 100%. It means your usable margin has reached zero, and you cannot open any new positions until your equity recovers.
💡 Practical Trading Example
If your open trades go deep into drawdown and your margin level hits 100%, the broker issues a margin call prompting you to add collateral.