What is a margin call in forex?

[PIPruit]

What is a margin call, how do you avoid it, and what is going to happen when you get one, please?

 

[Viltrada]

In forex trading, margin refers to the amount of money that a trader must put up as collateral to open a leveraged position.

 

[Gilee]

A margin call in Forex trading occurs when the trader's account equity falls below the required margin. Margin is the amount of money required by the broker to maintain open positions.

 

[Juanstevenson19]

Basically it’s a call from your enemy that you don’t want to pick up. In all seriousness, a margin call occurs when a trader's account balance falls below the required margin level, which is the minimum amount of funds necessary to maintain open positions. At this point, the broker will typically request that the trader deposits more funds into the account to bring the margin level back up.

 

[ArnavDeshmukh]

When the broker notifies you that your balance has fallen below the required margin and there is not enough equity to support your open orders, this is margin call. When the market goes against you, this occurs. It is crucial to be familiar with margin requirements at first to avoid margin call.

 

[CallahanSinclair]

it means that the trader's account no longer has sufficient margin to support their open positions. The purpose of a margin call is to prompt the trader to take action to prevent their account from falling into a negative balance or being liquidated.

 

[ImogenBeaumont]

If there is insufficient margin to protect your open orders, a margin call will occur. It may be a sign that you should close certain positions or make a deposit.

 

[LindaSerbu]

A margin call is a demand from your broker to deposit more funds or securities into your margin account to bring it up to the minimum required level. Margin is the amount of money you need to maintain in your account to keep your trades open

 

[Komondar]

Margin calls are like unexpected guests at a party – you're having a good time until they show up and start asking for money. So, always keep your margin in check and avoid those awkward financial encounters!