Equity Restoration
Equity restoration refers to the process of bringing an account's equity back to a healthy state after it has fallen near or below the maintenance margin. This can be achieved through depositing additional funds, closing a portion of the position, or waiting for the market price to move in a favorable direction.
It is a recovery phase in risk management that prevents the account from entering the final stages of liquidation. For traders, equity restoration is about regaining control of their financial position and minimizing the likelihood of forced exit.
It requires quick decision-making and access to liquid assets.