In Options Trading, How Does a Margin Call Relate to the Concept of Security Requirements like Confirmations? ▴ Learn

In Options Trading, How Does a Margin Call Relate to the Concept of Security Requirements like Confirmations?

A margin call is a demand by a broker for an investor to deposit additional capital to bring their margin account up to the minimum maintenance margin. This acts as a security mechanism to cover potential losses and protect the broker.

Similarly, higher confirmation requirements act as a security mechanism for an exchange, protecting it from the financial loss of a double-spend attack by demanding more 'security' (time/immutability) before recognizing the deposit.

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