INSIGHTSA margin call occurs when the equity in a trading account falls below the margin requirement set by a broker. This situation typically arises when the market moves unfavorably against a trader's position, leading to a decline in account equity. When a margin call is triggered, the broker requires the trader to deposit additional funds or securities to restore the account to the required margin level.
If the trader does not meet the margin call, the broker may close out positions to mitigate risk and bring the account back into compliance. This process underscores the importance of understanding margin requirements and managing risk effectively within trading strategies.