Can a Trader Prevent Liquidation after a Margin Call?
Yes, a trader can prevent liquidation after receiving a margin call by promptly adding more collateral (margin) to their account. This action increases the account equity, raising the margin ratio back above the maintenance margin level.
Alternatively, the trader can partially close the position to reduce the margin requirement. If neither action is taken before the margin falls to the liquidation level, the position will be forcibly closed.