What Are the Two Main Ways a Trader Can Satisfy a Margin Call? ⎊ Path

What Are the Two Main Ways a Trader Can Satisfy a Margin Call?

A trader can satisfy a margin call in two main ways. The first is by depositing additional funds (collateral) into their margin account, which immediately increases the account equity and brings the margin level back above the required threshold.

The second is by partially or fully closing their open position(s). Closing a position reduces the overall margin requirement, thus improving the margin ratio without needing to deposit new funds.

What Are the Two Main Ways a Trader Can Respond to a Margin Call?

Can a Trader Partially Close a Position Instead of Adding Funds?

What Is the Concept of ‘Zero-Fee’ Margin Top-Up?

How Can a Trader Avoid Forced Liquidation on a Leveraged Position?

How Does a Trader Meet a Margin Call to Avoid Liquidation?

How Does a Trader Meet a Margin Call Resulting from Daily Settlement?

How Can a Trader Avoid Liquidation without Reducing Their Position Size?

How Does Partially Closing the Position Affect the Margin Requirement?