Understanding Margin Calls and how to avoid it.
In the trading and investing world, borrowed money-often referred to as \"margin\"-can be a great way to leverage returns, but it also carries risk. Probably the most important risk that comes with trading on margin is receiving a margin call. A margin call might be somewhat unsettling for investors, especially those who are new to margin trading; it means that your investment has declined in value to the point where the collateral you have provided is no longer enough to cover the borrowed funds.