What does margin call mean in forex?

What does margin call mean in forex?

A margin call occurs when your account equity falls below the broker’s required margin level due to losing trades. The broker will alert you to deposit more funds; if equity drops further, they may automatically close your positions (stop-out) to prevent a negative balance.

What this looks like across the brokers we track

Across the 40 brokers BrokerAnalysis tracks, advertised maximum leverage ranges from 1:30 to 1:3000, with a median of 1:500. 10 of them cap retail leverage at 1:30 or lower, which is the ceiling EU and UK rules impose.

Measured across 40 entities in the BrokerAnalysis dataset. See the full broker comparison

Answer
A margin call occurs when your account equity falls below the broker’s required margin level due to losing trades. The broker will alert you to deposit more funds; if equity drops further, they may automatically close your positions (stop-out) to prevent a negative balance.

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