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Centrino Capital

Margin Call Definition

A margin call is a broker notification that an account's equity has fallen close to or below the required margin level.

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What is a Margin Call?

It typically requires the trader to deposit additional funds or reduce position size to avoid forced liquidation.

Margin calls are a key risk management mechanism in leveraged trading.

Example of Margin Call

An account with falling equity receiving a broker alert to add funds or reduce exposure has received a margin call.

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