What are margin levels and margin calls, how to use them?

<p id="isPasted"><strong>Margin Level:</strong></p><p>Imagine you want to buy a $100 stock, but you only have $50. By offering a "margin," your broker allows you to borrow the remaining $50, enabling you to purchase less than the full amount. However, you don't get this loan for free. You need to deposit some of your own money as collateral, known as the "margin."</p><p>The margin level is a percentage expressing how much of your own money you have deposited relative to the borrowed amount. For example, with a 50% margin requirement, you'd need to deposit $50 (half of the purchase price) to buy the $100 stock. Your margin level would then be 100% ($50 deposit / $50 loan).</p><p><strong>Margin Call:</strong></p><p>This is a wake-up call from your broker. If your account's margin level falls below a certain threshold, known as the maintenance margin (typically below the initial margin requirement), your broker will issue a margin call. This signifies that your collateral isn't sufficient to cover the potential risk of your open positions.</p>