Definition of Margin Call
A warning from your broker that your equity has fallen below the required margin maintenance level. It signals that your account is at risk and you need to either deposit more funds or close positions to restore margin levels.
At a glance
Example
Example: $1,000 equity and 1% risk = a $10 cash cap. Size from “Margin Call” and stop distance, not from a gut-feel lot size.
Common mistake
Common mistake: confusing “Margin Call” with advertised max leverage — leverage alone does not set risk per trade.
Professional tip
Tip: write a cash daily loss limit independent of “Margin Call”, then let the definition set size only inside that ceiling.