What Is a Margin Call, and What Is the Required Action?

A margin call is a notification from a broker or clearing house that a trader's margin account has fallen below the required maintenance margin level. The required action is for the trader to deposit additional funds, typically within 24 hours, to bring the account equity back up to the initial margin level.

Failure to act results in forced liquidation.

What Is the Risk of a CEX Processing a Withdrawal Too Quickly on an Unconfirmed Deposit?
Why Is the Initial Deposit of Liquidity Critical for Setting the Initial Value of “K”?
How Does a Margin Call Relate to the Initial Margin Segregation Requirement?
Is a Margin Call a Sign of Realized or Unrealized Loss?
Can a Trader Ignore a Margin Call without Consequences?
What Is the Risk of ‘Unwinding’ a Hedge Too Early or Too Late?
What Is a ‘Margin Call’ and What Action Must a Trader Take?
What Action Can a Trader Take to Restore Their Margin above the Maintenance Level?

Glossar