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A margin call occurs when your account equity falls below the broker’s required margin level due to losing trades. The broker will alert you to deposit more funds; if equity drops further, they may automatically close your positions (stop-out) to prevent a negative balance.
Answer
A margin call occurs when your account equity falls below the broker’s required margin level due to losing trades. The broker will alert you to deposit more funds; if equity drops further, they may automatically close your positions (stop-out) to prevent a negative balance.
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