What's a margin call

Hello Everyone

A margin call is when your "Equity" falls below the margin, the broker will issue a margin call. Traders can either close out their positions and add more funds to their account, or risk bankrupting the account if the trend keeps going against them.

Example:

You deposit $2,000, and your trades loss $1,500, the equity in your account falls to $500 and assuming the requirement is 25%, you must have $375 Equity in your account (25% of $1,500 = $375). you're still be ok in this situation as the $500 worth of equity in your account to avoid a margin call at $375. But let's say the requirement of your broker is 40% instead of 25%. In this case, your equity of $500 is less than the margin call of $600 (40% of $1,500 = $600). As a result, the broker may issue you a margin call.

In this situation the darker gray row containing your "Balance" "Equity" "Margin" etc will show "Pink" as your account burns itself out.

Good luck
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