What Is a Margin Call and What Does It Signal?
A margin call is a notification from the broker or exchange to a trader, signaling that their margin account equity has fallen below the required maintenance margin level. It requires the trader to deposit additional funds to bring the account back up to the initial margin level, or at least above the maintenance margin, to avoid a forced liquidation of their position.
It signals that the trader's position is losing money and is at high risk of being closed.
