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Margin Call

A broker demand for additional collateral when account equity falls too low.

In depth

If you don't meet the call (deposit cash or close positions), the broker will sell your holdings at market — often at the worst possible time. Margin calls can cascade in market selloffs as forced selling triggers more declines.

Frequently asked about Margin Call

What is Margin Call?

A broker demand for additional collateral when account equity falls too low. If you don't meet the call (deposit cash or close positions), the broker will sell your holdings at market — often at the worst possible time. Margin calls can cascade in market selloffs as forced selling triggers more declines.

Why does Margin Call matter for investors?

In trading, Margin Call is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

How is Margin Call used in practice?

If you don't meet the call (deposit cash or close positions), the broker will sell your holdings at market — often at the worst possible time. Margin calls can cascade in market selloffs as forced selling triggers more declines..

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