Margin Call

To put on positions on trading platforms or open futures positions on listed derivatives exchanges, clients are required to make small upfront payments a.k.a. maintenance margins (cf.), borrowing the rest of the position size from the broker. This is known as leveraged trading or trading on margin. If the position goes against the client, the broker will demand the client deposits an additional amount to bring the position back into balance. This is known as a margin call.

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