A margin call is the warning state reached when free margin runs low because open positions are losing value. Free margin is the balance left after margin is locked up, and most platforms express the health of the account as the margin level, which is equity divided by used margin. Once the margin level falls toward the stop-out threshold, the broker begins to act automatically.
Forex glossary
Margin Call
Related term
Stop-Out
A stop-out is the automatic closure of positions by the broker when the margin level falls to a preset percentage, for example fifty percent. The broker chooses…
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