Can a Trader Ignore a Margin Call without Consequences? ⎊ Path

Can a Trader Ignore a Margin Call without Consequences?

No, a trader cannot ignore a margin call without severe consequences. Failure to deposit the required funds within the specified time frame will result in the broker or clearing house forcibly liquidating the trader's position.

This forced liquidation can occur at an unfavorable price, potentially leading to further losses and a negative account balance.

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Glossar

Forced Liquidation

Trigger ⎊ Forced liquidation occurs when a trader's margin account falls below a predetermined maintenance margin level, compelling the broker or protocol to automatically close positions.

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.