What Is the Difference between a Margin Call and a Stop-Loss Order?
A margin call is an involuntary demand from the exchange for a trader to deposit more collateral to maintain a position. A stop-loss order is a voluntary instruction placed by the trader to automatically close a position at a specified price to limit losses.
The stop-loss is a risk management tool controlled by the trader, while the margin call is a mandatory exchange action.
Glossar
Trailing Stop-Loss Order
Execution ⎊ A trailing stop-loss order, prevalent in cryptocurrency derivatives and options trading, dynamically adjusts the stop price as the asset's price moves favorably.
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.