What Is a ‘Margin Call’ and How Does It Relate to Maintenance Margin?
A margin call is a notification from a broker or exchange to a trader, demanding that they deposit additional funds to bring their margin account back up to the required level, typically the initial margin level or to prevent it from falling below the maintenance margin. While common in traditional finance, crypto futures exchanges often skip the call and proceed directly to automatic liquidation once the maintenance margin is breached, due to the high volatility of crypto.
