Can MTM Trigger a Margin Call?
Yes, marking-to-market (MTM) is the direct mechanism that can trigger a margin call. When a futures position incurs losses due to adverse price movement, the MTM process debits those losses from the trader's margin account.
If this debit causes the account balance (equity) to drop below the required maintenance margin, the clearinghouse will issue a margin call, demanding the trader deposit additional funds to restore the margin level.
