What Is a ‘Margin Call’ and What Action Must a Trader Take?
A Margin Call is an alert issued by the exchange when a trader's account equity drops below the maintenance margin level. It signals that the account is at risk of liquidation.
Upon receiving a margin call, the trader must immediately deposit additional funds (margin) into their account to bring the equity back above the maintenance margin. Failure to meet the margin call in time will result in the automatic liquidation of the position.
