Margin call
A request for additional collateral after losses or a change in margin requirements.
Plain languagePractical exampleConnected reading
01
What is it?
A request for additional collateral after losses or a change in margin requirements.
02
Why does it matter?
Failure to meet it may trigger forced liquidation and accelerate losses.
03
How should it be read?
Review initial, maintenance and intraday margin rules together with broker terms.
04
Common mistake
Assuming the position will remain open until the market recovers.
A simple example
If equity falls below maintenance margin, the broker may demand cash or close the position.