Margin and the Dreaded Margin Call

All day trading markets have margin requirements, but many day traders do not fully understand what margin is, nor what happens when their brokerage makes a margin call.

Margin is nothing to be scared of, as it is simply a financial requirement that is set by the exchange that offers a particular market, but a margin call is something that should be avoided at all costs. If you do not yet know what margin is, or why professional traders should never experience a margin call, full definitions are available in the margin and margin call glossary entries.