What Is Margin Call?
Definition and plain-English explanation of "Margin Call"
A margin call happens when the value of a margin account falls below the broker's required minimum, forcing the investor to deposit more cash or sell assets to cover the shortfall. Margin calls often occur during sharp market declines and can force investors to sell at the worst possible time, locking in heavy losses.
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Market Navigator Glossary — plain-English definitions of 93+ investing and crypto terms. All content is for educational purposes only and does not constitute financial advice.