What Is the Typical Time Frame Given to Meet a Margin Call?
The time frame to meet a margin call is often very short, especially in volatile markets like cryptocurrency. For futures, it can be as little as an hour or less, and sometimes immediate, depending on the broker and the exchange's rules.
The urgency is due to the need to quickly restore the account's equity to prevent further losses from exceeding the collateral, thereby protecting the clearing house.
Glossar
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.
Time Frame
Horizon ⎊ Time frame, within cryptocurrency derivatives and financial markets, defines the anticipated period for an investment’s or strategy’s performance evaluation, directly influencing risk parameter calibration.