What Is a ‘Margin Call’ and What Triggers It in Futures Trading?
A margin call is a demand from the broker or clearing house for a trader to deposit additional funds into their margin account. It is triggered when the equity in the account falls below the maintenance margin level, typically due to adverse price movements that result in losses from the daily 'marking to market' process.
The trader must promptly meet the call to avoid having their position forcibly liquidated.
Glossar
Margin Call
Trigger ⎊ A margin call in cryptocurrency, options, and derivatives markets represents a broker’s demand for additional funds to bring an account back to the minimum required margin.
Deposit Additional Funds
Deposit ⎊ Within cryptocurrency, options trading, and financial derivatives, a deposit signifies the allocation of capital to a trading account or platform, enabling participation in various market activities.