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What is Margin Call?

Updated October 17, 2026

A margin call is a warning that your account no longer has enough equity to support your open trades.

A margin call happens when losses push your margin level below the broker's limit. It's basically a red light.

You can add money or close trades to fix it. If you do nothing and it keeps falling, the broker closes trades for you.

The best way to avoid it is simple. Use small lot sizes and stop losses so one move can't drag the whole account down.

Example

You open three big trades on $300, the market dips, and your platform turns red with a margin call warning.

Questions people ask

Does a margin call close my trades?

Not always by itself. The stop out level is what triggers automatic closing.

Can a trading bot cause a margin call?

Yes, especially grid or martingale bots that keep adding trades. Check how a bot handles losing streaks before you run it.

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