what is Margin Call?

 A margin call is a demand from a broker or financial institution that an investor deposit additional money or securities into their margin account. This is because the value of the securities in the margin account has dropped and has fallen below a certain level, known as the maintenance margin. The maintenance margin is the minimum amount of equity that an investor must maintain in their margin account in order to continue to hold their position. A margin call is typically triggered by a significant drop in the value of the securities in the account, such as during a market downturn. If the investor does not meet the margin call, the broker may liquidate some or all of the securities in the account to bring the account back up to the maintenance margin level.

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