# What Is a "Margin Call" and When Is It Triggered in the MTM Process? ⎊ Path

**Published:** 2025-12-05
**Author:** Greeks.live
**Categories:** Path

---

## 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.

- [What Is the Typical Time Limit to Meet a Margin Call?](https://learn.greeks.live/path/what-is-the-typical-time-limit-to-meet-a-margin-call/)

- [What Is a ‘Margin Call’ and How Does It Precede Forced Liquidation?](https://learn.greeks.live/path/what-is-a-margin-call-and-how-does-it-precede-forced-liquidation/)

- [What Is a ‘Margin Call’ in Options Trading and How Is It Triggered?](https://learn.greeks.live/path/what-is-a-margin-call-in-options-trading-and-how-is-it-triggered/)

- [What Is a ‘Margin Call’ and How Is It Triggered by the Mark-to-Market Process?](https://learn.greeks.live/path/what-is-a-margin-call-and-how-is-it-triggered-by-the-mark-to-market-process/)

- [What Happens during a “Margin Call” and Why Is It Crucial for CCP Stability?](https://learn.greeks.live/path/what-happens-during-a-margin-call-and-why-is-it-crucial-for-ccp-stability/)

- [What Is the “Margin Call” Process and How Does It Relate to Maintenance Margin?](https://learn.greeks.live/path/what-is-the-margin-call-process-and-how-does-it-relate-to-maintenance-margin/)

- [What Is a “Margin Call” and How Does It Relate to Liquidation?](https://learn.greeks.live/path/what-is-a-margin-call-and-how-does-it-relate-to-liquidation/)

- [What Is a “Maintenance Margin” and When Is It Triggered for an Options Seller?](https://learn.greeks.live/path/what-is-a-maintenance-margin-and-when-is-it-triggered-for-an-options-seller/)

## Glossar

### [Margin Call](https://learn.greeks.live/area/margin-call/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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.

### [MTM Process](https://learn.greeks.live/area/mtm-process/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Calculation ⎊ This systematic procedure involves valuing all open derivative positions using the latest available market data, including spot prices and the prevailing implied volatility surface.

### [MTM](https://learn.greeks.live/area/mtm/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Valuation ⎊ Market-to-Market, or MTM, within cryptocurrency derivatives represents the continuous recalculation of the profit or loss on open positions based on real-time market prices, a practice critical for risk management and collateralization.

## Discover More

### [How Does MTM Reduce Counterparty Risk?](https://learn.greeks.live/path/how-does-mtm-reduce-counterparty-risk/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does MTM Reduce Counterparty Risk?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Geometric-Intersection-Representing-Collateralized-DeFi-Option-Strike-Price-Convergence-In-Dark-Mode.webp)

Daily Settlement → downarrow Uncollateralized Debt. Minimizes Loss on Default 75.

### [What Is the "Margin Call" Process and How Does It Relate to Maintenance Margin?](https://learn.greeks.live/path/what-is-the-margin-call-process-and-how-does-it-relate-to-maintenance-margin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the "Margin Call" Process and How Does It Relate to Maintenance Margin?](https://learn.greeks.live/wp-content/uploads/2025/10/Crossover-Point-Intersection-of-Volatility-Skew-and-Algorithmic-Trading-Execution-on-Decoupled-Digital-Asset-Ledger.webp)

A margin call is a demand for more collateral, triggered when an account's equity falls below the minimum required maintenance margin level.

### [How Do 'Dark Pools' Contribute to the Overall Liquidity and Price Discovery Process?](https://learn.greeks.live/path/how-do-dark-pools-contribute-to-the-overall-liquidity-and-price-discovery-process/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do 'Dark Pools' Contribute to the Overall Liquidity and Price Discovery Process?](https://learn.greeks.live/wp-content/uploads/2025/10/Metallic-Instrument-Precision-Balancing-Crystalline-Sphere-Over-DeFi-Protocol-Interfaces.webp)

Dark pools provide hidden liquidity for large trades, minimizing slippage and market impact, but not public price discovery.

### [How Does Cash Settlement Simplify the Exercise Process for Both the Option Buyer and Seller?](https://learn.greeks.live/path/how-does-cash-settlement-simplify-the-exercise-process-for-both-the-option-buyer-and-seller/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does Cash Settlement Simplify the Exercise Process for Both the Option Buyer and Seller?](https://learn.greeks.live/wp-content/uploads/2025/10/Cryptocurrency-Volatility-Skew-Hedging-Mechanism-Depicting-Exotic-Option-Payoff-Structures.webp)

Cash settlement eliminates asset transfer, reducing operational overhead, delivery risk, and blockchain transaction complexities/costs.

### [What Is a 'Margin Call' in Options Trading and How Is It Triggered?](https://learn.greeks.live/path/what-is-a-margin-call-in-options-trading-and-how-is-it-triggered/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is a 'Margin Call' in Options Trading and How Is It Triggered?](https://learn.greeks.live/wp-content/uploads/2025/10/Fluorescent-Margin-Call-Indicator-Interfacing-with-Layered-Digital-Asset-Ledger-Tapes.webp)

A broker's demand for additional funds when account equity falls below the maintenance margin requirement.

### [What Is a "Margin Call" and How Does It Relate to Collateral?](https://learn.greeks.live/path/what-is-a-margin-call-and-how-does-it-relate-to-collateral/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is a "Margin Call" and How Does It Relate to Collateral?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Engineering-of-Digital-Asset-Volatility-Management-Through-Spherical-Interface-Mechanisms.webp)

A demand for additional collateral when a leveraged position's value drops below the maintenance margin level, risking liquidation if unmet.

### [How Does MTM Affect the Calculation of Profit and Loss?](https://learn.greeks.live/path/how-does-mtm-affect-the-calculation-of-profit-and-loss/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does MTM Affect the Calculation of Profit and Loss?](https://learn.greeks.live/wp-content/uploads/2025/10/Macro-Visualization-of-Precision-Time-Decay-Modeling-in-Decentralized-Derivatives-Execution.webp)

Unrealized gains and losses are settled daily in cash, providing an accurate, continuous account of P&L.

### [What Is the Term for the Process of Moving Assets between a Custodian's Internal Sub-Ledger and the Blockchain?](https://learn.greeks.live/path/what-is-the-term-for-the-process-of-moving-assets-between-a-custodians-internal-sub-ledger-and-the-blockchain/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Term for the Process of Moving Assets between a Custodian's Internal Sub-Ledger and the Blockchain?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Finance-Mechanism-Representing-Atomic-Swap-Liquidity-Pool-Convergence-Under-Quantum-Entanglement.webp)

Reconciliation (matching internal and on-chain balances) and Settlement (the on-chain transfer to reflect sub-ledger transactions).

### [How Does MTM Impact the Cash Flow of a Futures Trader?](https://learn.greeks.live/path/how-does-mtm-impact-the-cash-flow-of-a-futures-trader/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does MTM Impact the Cash Flow of a Futures Trader?](https://learn.greeks.live/wp-content/uploads/2025/10/Hinge-Mechanism-Aesthetics-in-Decentralized-Finance-Protocol-Module-Interoperability-Visualization.webp)

It creates a daily, fluctuating cash flow (inflows/outflows) that requires careful liquidity management.

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**Original URL:** https://learn.greeks.live/learn/what-is-a-margin-call-and-when-is-it-triggered-in-the-mtm-process/
