A margin call is one of the scariest moments for any trader. It happens when your equity drops too low to support your open trades. Brokers send a warning—or automatically close positions—to protect both you and themselves from going into negative balance.
This situation often occurs when traders over-leverage, trade without stop-losses, or hold losing positions too long. Avoiding margin calls starts with understanding your broker’s margin requirements and using conservative leverage ratios.
Always aim to keep your margin level above 200%—that’s a safety zone for volatility. Monitor your trades regularly and don’t let greed cloud judgment. Margin calls aren’t bad luck—they’re the result of poor risk control
This situation often occurs when traders over-leverage, trade without stop-losses, or hold losing positions too long. Avoiding margin calls starts with understanding your broker’s margin requirements and using conservative leverage ratios.
Always aim to keep your margin level above 200%—that’s a safety zone for volatility. Monitor your trades regularly and don’t let greed cloud judgment. Margin calls aren’t bad luck—they’re the result of poor risk control