A Margin Call refers to the automatic closure of a trade due to insufficient equity.

This happens as a result of a price moving in a direction that is not favorable to the trader, reducing their equity below the Maintenance Margin (the amount needed), meaning that they no longer have enough equity to keep the position open.

Traders can use a stop loss feature as an extra precaution against margin calls but should always remain aware of market movements while positions are open. In order to avoid margin calls, traders can deposit more funds to meet the maintenance margin requirements or reduce their exposure by either closing or adjusting their open positions.

Although Mt5 application does send a notification once the trading account has reached the margin call to alert the trader; ultimately, it is the trader’s responsibility to monitor their trades to ensure that they have sufficient funds to support their position’s Maintenance Margin.

Traders can try how margin call shows by downloading the mt5 application and signing up for a demo account as it is one of best trading application for currency trading, commodity trading. We at XGLOBAL, your chosen forex broker, offer a download link to the mt5 application available via our website.