A margin call is a process triggered when the value of securities in a margin account falls below a certain level, which is specified by the broker and can vary between different brokerage firms. 

Here’s how the process of margin trading typically works up to the point of a margin call:

• Opening a Margin Account: A trader open a margin account with a brokerage, allowing them to borrow funds to trade securities, leveraging their buying power
• Establishing Initial Margin: The trader must meet the initial margin requirement, a percentage of the total trade value that acts as collateral for the borrowed funds
• Executing Trades: The trader uses the borrowed funds to execute trades, potentially amplifying their gains or losses
• Maintenance Margin Requirement: Brokers set a maintenance margin requirement, a minimum account value that must be maintained to continue holding the leveraged positions
• Monitoring Account Value: The brokerage continuously monitors the account's value in real-time based on the current market prices of the securities held
• Margin Call Trigger: If the account value falls below the maintenance margin level due to market fluctuations or trading losses, a margin call is triggered
• Broker Notification: The broker issues a margin call, notifying the trader that they must deposit additional funds or securities promptly to bring the account value back above the maintenance margin
• Response By Trader: The trader has options - they can deposit additional funds, sell securities to raise cash, or a combination of both to meet the margin call
• Forced Liquidation: If the trader fails to meet the margin call within the specified timeframe, the broker may initiate forced liquidation—selling some or all of the trader's positions to cover the outstanding debt
• Account Reassessment: After meeting the margin call, the account is reassessed, and the trader can resume using the account. If the forced liquidation occurred, the tradermay have a reduced portfolio and increased debt

As evident from the process described above, margin trading can be a quite risky strategy that requires experience and a clearly defined action plan from the trader to avoid major losses and insolvency issues. 

In addition to the clear financial implications of failing to meet margin requirements, a prolonged delay between margin payments can also result in legal action from the brokerage, as they need to recoup their portion of the margin. 

Furthermore, the brokerage can blacklist the trader, which bars them from opening a new account with the broker in the future. 

Effective risk management is essential for traders engaged in margin trading to mitigate these potential financial setbacks. This includes choosing a conservative degree of leverage and picking less volatile trades when doing so on margin. 

• A margin call happens when a trader’s account balance falls below the margin requirement level, after which the broker may liquidate the trader’s assets
• If the trader does not deposit more funds to pay off the margin, the broker will lock the account until sufficient funds are available, and may even resort to blacklisting the trader
• After meeting the margin call, the account is reassessed by the broker and the trader can continue using it 
• A prolonged failure to meet the margin requirement may result in legal action from the brokerage against the trader