What Is a “Margin Call” and When Is It Triggered in the MTM Process?
A margin call is a demand from a broker or clearinghouse for a trader to deposit additional funds into their margin account. It is triggered during the MTM process when the equity in the trader's account falls below the maintenance margin level.
The purpose is to restore the account balance to the initial margin level, ensuring the trader has sufficient collateral to cover any further adverse price movements.
