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Margin Call

A margin call is a request made by a broker or financial institution to a trader to deposit additional funds or securities into their account in order to meet the minimum margin requirements. Margin requirements are set by brokers and are designed to ensure that traders have sufficient capital to cover potential losses on their trades. Note that margin calls may not be issued in some cases. Traders are recommended to monitor the account closely and ensure the margin requirements are met at all times.

If a trader does not meet a margin call, their broker may close out some or all of the trader’s positions to reduce the risk of further losses. Margin calls can be a significant risk for traders who are using leverage, as they may be required to deposit additional funds or securities at short notice, or risk having their positions closed out.

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