easy · FRM Part 1 Financial Markets and Products
What happens if a futures trader fails to meet a margin call by the required deadline?
- The trader's maintenance margin is automatically reduced to match the current balance.
- The trader is given a one-week grace period to find the necessary funds.
- The clearinghouse automatically liquidates the trader's position to prevent further losses.
- The losses are socialized among all other traders on the exchange immediately.
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