How Can a Trader Avoid a Margin Call in a Volatile Market? ⎊ Path

How Can a Trader Avoid a Margin Call in a Volatile Market?

A trader can avoid a margin call by maintaining a high margin balance above the maintenance margin requirement. Deposit additional collateral, or reduce the size of leveraged positions before volatility hits.

Setting strict stop-loss orders can automatically close positions before losses deplete the margin. Diversifying the portfolio can also mitigate single-asset risk.

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