How Does a Margin Call Work in a Leveraged Cryptocurrency Futures Trade?
A margin call occurs when the equity in a trader's margin account falls below the maintenance margin requirement, typically due to adverse price movements. The exchange or broker issues a call, requiring the trader to deposit additional funds (collateral) to bring the account back up to the required level.
Failure to meet the margin call results in the forced liquidation of the trader's position to prevent further losses.
