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Investment
Margin Call
A demand from your broker to deposit more money because your margin account has fallen below the required level.
Margin calls protect the broker from losses. They are stressful and often happen at the worst time (when prices are already falling). Good traders keep extra cash in margin accounts to avoid forced selling.
It's the broker phoning you and saying 'your account is too low — add money now or we sell everything'.
Real world: You buy shares on margin. The price drops and your equity falls below 30%. The broker issues a margin call. You must deposit cash or the broker will sell your shares automatically.
💡 Never ignore a margin call — it can wipe out your entire account if you do nothing.