Can a Margin Call Be Issued for a Non-Leveraged Position? ⎊ Path

Can a Margin Call Be Issued for a Non-Leveraged Position?

No, a traditional margin call is not issued for a non-leveraged (spot) position, as there is no borrowed capital or risk of the account falling into a negative balance. A margin call is specific to leveraged trading, where the collateral must cover the borrowed amount.

In spot trading, a trader owns the asset outright, and the only risk is the value of the asset declining.

How Is Margin Conceptually Similar to the Collateral Required for a DeFi Loan?

What Is the Role of ‘Collateral’ in Managing Basis Risk in Arbitrage?

How Does a Margin Call Differ for a Short Put Option versus a Short Call Option?

How Does the Funding Rate Differ from a Traditional Interest Rate on Borrowed Capital?

What Distinguishes an Equity Option from a Non-Equity Option for Tax Purposes?

Is a Margin Call Possible in an Unleveraged Spot Crypto Trade?

Can a Margin Call Be Issued in Cryptocurrency Instead of Fiat?

What Is the Difference between an Equity Margin Call and a Portfolio Margin Call?

Glossar

Margin Call

Trigger ⎊ A margin call in cryptocurrency, options, and derivatives markets represents a broker’s demand for additional funds to bring an account back to the minimum required margin.