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How much time do I have to meet a margin call?

How much time do I have to meet a margin call?

Updated over a week ago

How much time do I have to meet a margin call?

A margin call is a demand to deposit additional funds into your account to meet the minimum margin requirements. This is usually triggered when the value of your account falls below a certain percentage of the required margin. In this article, we will discuss the time frame you have to meet a margin call and the consequences of not meeting it.

Time frame for meeting a margin call

The time frame for meeting a margin call is dependent on the market's price action. This means that the time given to meet the call can vary depending on the volatility of the market. In some cases, you may have a few hours to meet the call, while in others, you may only have a few minutes.

It is important to note that the time frame for meeting a margin call is not set in stone and can change at any time. This is why it is crucial to monitor your account and be prepared to meet the call immediately.

Importance of meeting the margin call promptly

Meeting a margin call promptly is crucial because failure to do so can result in serious consequences. If you do not meet the margin call within the given time frame, your exchange may automatically liquidate your position.

This means that your exchange will sell off your assets to cover the margin requirement. This can result in significant losses for you, as the assets may be sold at a lower price than what you originally paid for them.


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