How Does the Price of the Underlying Asset Affect the Size of a Margin Call?
The price of the underlying asset directly affects the size of a margin call through its impact on the contract's profit and loss. If the price moves against a trader, the loss is magnified by the contract size.
A higher underlying price means the potential loss per contract is greater, leading to a larger deficit in the margin account and thus a larger required deposit to meet the margin call.
