Margin and Margin Call:
Margin is the minimum amount of money you have to keep in your account before you go for trading. This is generally determined by the broker.
Lets say the forex broker has set $300 as the margin for 1 lot for the currency pair you are trading. And if you have $1000 in your account. Lets say 1 pip is $10 for the currency pair you are trading. If the trade goes against you and if you lose more than 70 pips the broker will close your trade to maintain the minimum margin required so that you won’t lose more money than you have in your account. So you don’t have to worry about paying back to the broker.
The closing of the trade by the broker to maintain the margin is called Margin Call.
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