What Is a ‘Margin Call’ and What Triggers It in a Volatile Crypto Market?
A margin call is a demand from the exchange or broker for a trader to deposit additional funds to bring their margin account back up to the maintenance margin level. In a volatile crypto market, a sudden adverse price movement can rapidly reduce the equity in a leveraged position, triggering a margin call.
Failure to meet the call results in the forced liquidation of the position.
