Margin call
A broker's demand to top up your deposit when a loss pushes equity towards the required margin. Failing to pay can lead to forced liquidation.
Definition
A margin call is a broker’s demand (or automatic procedure) to top up your deposit when a loss pushes equity towards the required margin. If you do not respond, the next step is often a partial or full stop-out — the broker closing positions in order to protect the deposit.
Example
You hold a leveraged CFD position; after a move against you, free margin falls below the threshold. The broker requires a deposit or a reduction in exposure. With no action, equity can fall to the level at which the position is closed automatically.
Anti-example / common mistake
Treating a margin call as “time to add funds and average down”. That often deepens the loss. Another mistake: not realising that a stop-out can fill worse than your planned stop-loss when there are gaps and slippage.