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Margin Call

A margin call is a demand from a broker or exchange for an investor to deposit additional funds or securities into their account to meet the minimum margin requirements. Margin requirements are set by brokers and exchanges to ensure that investors have sufficient funds to cover potential losses on their trades.

In the context of cryptocurrency trading, a margin call can occur when an investor's account balance falls below the minimum required level as a result of market movements or losses on their trades. When a margin call is triggered, the investor must either deposit additional funds or securities into their account or close out some of their positions to meet the margin requirements.

Margin calls can be a significant risk for investors who use leverage or margin to trade, as they may be forced to sell positions at inopportune times or at a loss in order to meet the margin requirements. It is important for investors to understand the margin requirements of their broker or exchange and to carefully manage their leverage and risk in order to avoid a margin call.

Overall, margin calls are an important aspect of trading with leverage or margin and can have significant consequences for investors who are not careful to manage their risk.

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