What is a margin call in forex and how do I avoid one?
How this answer was verified
- Cross-checked against broker-published fact sheets, regulator licensing databases, and ESMA product intervention notices.
- Reviewed by our editorial team (Marcus Weber CFA, Sofia Lindgren FRM, Daniel Ferretti LLM).
- Refreshed quarterly. The most recent verification date is shown above. Read our methodology.
Related questions
What are the ESMA leverage limits for retail forex traders?
ESMA limits retail forex leverage to 30:1 on major currency pairs, 20:1 on minors and major indices, 10:1 on commodities and non-major indices, 5:1 on individual equities, and 2:1 on cryptocurrencies. These limits apply to all EU/EEA regulated brokers since 1 August 2018.
What is negative balance protection and do all EU brokers offer it?
Negative balance protection guarantees that retail forex traders cannot lose more money than they deposit. ESMA rules make it mandatory for all EU-regulated brokers serving retail clients. This means extreme market events like the 2015 Swiss franc shock cannot leave you owing money to your broker.
What is a pip in forex trading?
A pip (percentage in point) is the smallest standard price movement in a forex pair — typically the fourth decimal place (0.0001) for most pairs, or the second decimal place (0.01) for JPY pairs. On a standard lot (100,000 units) of EUR/USD, one pip is worth approximately $10.