Forex margin calls occur when a trader's account equity falls below the required margin level. Margin is the amount of money required to open and maintain a trading position, and it is a form of collateral to cover potential losses. When the account equity falls below the margin requirement, a margin call is issued, and the trader must either deposit more funds or close out some of their positions to avoid the risk of a forced liquidation. Margin calls are an essential risk management tool that helps traders manage their exposure to potential losses. Traders should carefully monitor their account equity and maintain sufficient margin to avoid margin calls and minimize potential losses.
