Trading 101: What is Margin Call Trading?

If you are buying shares on margin, you should maintain the minimum balance in your account as stipulated by the broker. The margin balance should be maintained so that you will be eligible for margin purchase. If you fail to maintain the margin money in your account, you will get a margin call.

Trader is doing margin trading

The margin call will be made by the broker to request you to deposit more money in your account so that you will not be penalized. If you fail to manage sufficient money in your account as per the margin call definition, you should want to sell equities to manage sufficient balance.…



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