Derivatives & Risk

What is a margin call in crypto trading?

A margin call is a demand from an exchange or broker to add collateral when a leveraged position's equity falls below the required maintenance level. It signals that losses have eroded the buffer protecting the position. If the trader does not add funds, the position is usually liquidated automatically to cap the lender's exposure. For example, a falling Bitcoin position may trigger a call to deposit more, or be closed at a loss. Margin calls show how quickly leverage can force decisions during volatility. Many disciplined investors avoid this dynamic entirely through unleveraged allocation, the approach Qatobit's research frames.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.