What Is a Margin Call in Crypto and How Does It Lead to Liquidation?

A leveraged position can look perfectly manageable right up until the moment the exchange signals that the collateral supporting it is no longer sufficient.That warning is a margin call. It does not necessarily mean the position has already been closed. Instead, it signals that losses have eaten into the financial buffer supporting the trade, leaving less room for the market to move in the wrong direction.That distinction matters because margin calls and liquidation are often treated as if they