What is a margin call and liquidation
In short: A margin call is a warning that your account barely has enough funds to keep leveraged positions open. If price keeps moving against you, the broker or exchange forcibly closes the position — that is liquidation, or a stop-out.
Why it happens
With leverage you put up only part of the position's value — the margin. When the loss eats the margin, the platform closes the trade so you do not go negative.
How to avoid it
Put a stop-loss on every trade — it closes the loss earlier and on your terms. Size positions by your risk per trade, not by the maximum leverage available.
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Trading on financial markets carries a risk of losing money. This material is educational and is not investment advice.
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