Margin Call
What is a margin call? When a trader uses margin to take advantage of higher trading positions and possibly earn higher payouts, it is generally a good idea to balance the available funds in your account balance (Available Equity) and those taken from the broker (Used Margin), to check . . The relationship between the two is called the margin level and it allows traders to see whether or not they can open new trades. There are three levels in the margin. The first level is above the 100% margin level where a trader can always open new positions and keep existing ones. There is exactly the 100% margin level at which a trader can hold positions but not open new ones. Then we have below 100% where traders can't even hold existing positions. Then the forex margin call takes place. If the margin level drops below 100%, the broker may initiate a margin call, informing the trader to fund their account or close ("liquidate") positions until the margin level is restored at 100%....