When this threshold is reached, you are in danger of the POSSIBILITY of having some or all of your positions forcibly closed (or \u201cliquidated<\/strong>\u201c).<\/p>\n\n\n\n The Margin Level is the \u201cmetric\u201d and the \u201cMargin Call Level<\/em>\u201d is a specific \u201cvalue\u201d of the metric (which is the Margin Level).<\/p>\n\n\n\n Yeah, it\u2019s awkward. But don\u2019t blame us, we\u2019re not the ones who name these things.<\/p>\n\n\n\n For example, some forex brokers have a Margin Call Level of 100%.<\/strong><\/p>\n\n\n\n In the specific example above,\u00a0 if the\u00a0Margin Level in your account falls to 100%<\/strong>\u00a0or lower, a \u201cMargin Call<\/strong>\u201d will occur.<\/p>\n\n\n\n A Margin Call<\/strong> is when your broker notifies you that your Margin Level has fallen below the required minimum level<\/strong> (the \u201cMargin Call Level\u201d).<\/p>\n\n\n\n This notification<\/em> used to be an actual phone call, but nowadays, it\u2019s usually an email or text message.<\/p>\n\n\n\n Regardless of how you\u2019re actually notified, the feeling isn\u2019t great.<\/p>\n\n\n\n A Margin Call occurs when your floating losses are greater than your Used Margin<\/strong>.<\/p>\n\n\n\n This means that your Equity is less than your Used Margin (since floating losses<\/a> reduce your Equity<\/a>).<\/p>\n\n\n\n Traders tend to get confused between a Margin Call Level and Margin Call.<\/p>\n\n\n\n Think about boiling water.<\/p>\n\n\n\n For water to normally boil, the temperature must reach 100\u00b0 C<\/strong>.<\/p>\n\n\n\n Let\u2019s say your forex broker has a Margin Call Level at 100%<\/strong>.<\/p>\n\n\n\n This means that your trading platform will send you a warning notification if your Margin Level reaches 100%<\/strong>.<\/p>\n\n\n\n Aside from receiving a notification, your trading will also be affected.<\/p>\n\n\n\n If your account\u2019s Margin Level reaches 100%<\/strong>, you will NOT be able to open any new positions, you can only close existing positions.<\/p>\n\n\n\n A Margin Call Level at 100% means that your Equity is equal to or lower than your Used Margin.<\/strong><\/p>\n\n\n\n This occurs because you have open positions whose floating losses continue to INCREASE.<\/p>\n\n\n\n Let\u2019s say you have a $1,000<\/strong> account and you open a EUR\/USD position with 1 mini lot (10,000 units) that has a $200<\/strong> Required Margin.<\/p>\n\n\n\n Since you only have one position open, Used Margin will also be $200 <\/strong>(same as Required Margin). At this point, you still suck at trading so right away, your trade quickly starts losing.<\/p>\n\n\n\n It\u2019s losing big time. (You really<\/em> suck at trading.)<\/p>\n\n\n\n You\u2019re now down 800 pips. <\/strong><\/p>\n\n\n\n At $1\/pip, this means you have a floating loss of $800<\/strong>!<\/p>\n\n\n\n![\"Margin](\"https:\/\/bpcdn.co\/images\/2019\/02\/20232444\/margin-call-level-diagram1.png\")
<\/figure>\n\n\n\nWhat is a Margin Call<\/em>?<\/h2>\n\n\n\n
![\"Receive](\"https:\/\/bpcdn.co\/images\/2019\/02\/14161447\/receive-margin-call.png\")
<\/a><\/figure>\n\n\n\n\u201cMargin Call Level\u201d vs. \u201cMargin Call\u201d<\/h2>\n\n\n\n
<\/figure>\n\n\n\nExample: Margin Call Level at 100%<\/h2>\n\n\n\n
Margin Call Level = Margin Level @ 100%<\/pre>\n\n\n\n
<\/a><\/p>\n\n\n\n