What Is a ‘Margin Call’ in the Context of Crypto Derivatives Trading?
A margin call is a demand from a broker or a decentralized exchange for a trader to deposit additional collateral (margin) to bring their margin account back up to the required minimum level. This occurs when the value of the trader's position has dropped significantly, and their collateral is at risk of falling below the maintenance margin.
Failure to meet the margin call typically results in the forced liquidation of the trader's position.
