Define “Margin Call” in the Context of Leveraged Trading.

A margin call is a demand from a broker or exchange for a trader to deposit additional funds or assets into their margin account. This occurs when the equity in the account falls below the required maintenance margin level, usually due to adverse price movement on a leveraged position.

The call requires the trader to bring the account back up to the minimum required level or face liquidation.

What Is a ‘Margin Call’ and What Action Is Required?
Explain the Term ‘Maintenance Margin’ in the Context of Leveraged Derivatives Trading
What Is the Difference between ‘Initial Margin’ and ‘Maintenance Margin’?
Define “Maintenance Margin” and Its Role in Preventing Liquidation
What Is the ‘Maintenance Margin’ Level in Derivatives Trading?
How Does the Exchange Calculate the Amount of Margin Required to Meet the Call?
What Is the Minimum Amount of Margin That Must Be Added to Avoid Liquidation?
What Is the Relationship between ‘Initial Margin’ and ‘Maintenance Margin’?