Trading

Margin call

A demand to add funds or securities, or reduce positions, when account equity falls below requirements.

Plain-English context

Put the definition to work.

ILLUSTRATIVE EXAMPLE

If an account falls below required equity, the broker may demand funds or liquidate positions under its agreement, potentially without waiting for the investor's preferred timing.

IMPORTANT DISTINCTION

Do not assume notice or extra time is guaranteed; broker liquidation rights can apply before you respond.

Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. FINRA — order types and execution

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