Margin Call
Risk
A margin call is a demand to add capital or close positions because account equity has fallen below maintenance margin.
A margin call is a demand to either add capital or reduce positions because account equity has fallen below maintenance margin. In prop trading, the practical equivalent is forced position reduction by the firm''s risk team when the trader approaches drawdown thresholds.
True margin calls are rarer in retail prop trading than in margin brokerage accounts because most prop firms use real-time risk monitoring rather than end-of-day margin calls.
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