Margin call – Someone who trades with leverage, borrows a part of their deposit. That part of the deposit can be borrowed because they supply an amount as collateral. When the trade becomes unprofitable, it can go on this way as long as the amount of loss is less than the collateral. When the loss hits or surpasses the collateral, the trader gets a margin call. This means the trader loses their collateral and their position is nullified.
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