<p><strong>Margin Call</strong> is a warning issued by a broker when the <a href="/NewSite/encyclopedia/margin/" class="ency-link">margin</a> level in a trader's account falls critically low. This occurs when the equity in the account drops below a certain percentage of the margin required to maintain open positions.</p>
<p>Margin calls matter because they indicate that a trader's account is at risk of being liquidated. If the margin call is not met, the broker will automatically close open positions to cover the margin deficit. This can result in significant losses for the trader. Therefore, it's crucial for traders to monitor their margin levels closely and ensure they have sufficient funds to meet margin calls.</p>