Margin call definition
Margin call is the term for when you no longer have sufficient funds in your account to keep a leveraged position open. If you are placed on margin call then your positions are at risk of being closed automatically.
When you trade using leverage, you need to maintain a certain balance in your account as margin. If your losses from a trade mean that you no longer have the required margin in your account, you'll be placed on margin call.
How does a margin call work?
A margin call works by alerting you that your positions are now at risk of being closed on your behalf. At FOREX.com, we'll start closing positions if your account balance drops below 100% of your margin requirement.