What Is the Consequence of Failing to Meet a Margin Call?
If a trader fails to meet a margin call by the required deadline, the clearing house or broker will immediately liquidate the trader's futures position. This forced liquidation means the position is closed out at the current market price to cover the losses.
The trader forfeits the remaining margin in the account and is responsible for any further deficit if the liquidation does not fully cover the losses. This is a critical risk of leveraged trading.
