What Role Do ‘Margin Calls’ Play in Derivatives Trading?

Margin calls are demands from a broker to a trader to deposit additional funds into their margin account to bring the account's equity back up to the minimum required level. They occur when the value of the assets in the account falls due to adverse price movements, reducing the collateral below the maintenance margin.

Failure to meet a margin call can lead to the forced liquidation of the trader's position.

What Is the Difference between ‘Initial Margin’ and ‘Maintenance Margin’?
What Is the Formula for Calculating Account Equity in a Margin Account?
What Is the Risk of a CEX Processing a Withdrawal Too Quickly on an Unconfirmed Deposit?
Can a Trader Incur a Negative Balance after a Forced Liquidation?
How Does a Margin Call Work in a Leveraged Futures Position?
How Does a ‘Margin Call’ Occur in a Leveraged Futures Position?
What Are a Trader’s Two Main Options after Receiving a Margin Call?
What Is a Margin Call and What Does It Signal?