Search results
- DictionaryMar·gin call/ˈmärjən ˌkôl/
noun
- 1. a demand by a broker that an investor deposit further cash or securities to cover possible losses.
Powered by Oxford Languages
People also ask
What causes a margin call?
How do you satisfy a margin call?
What are the common ways to avoid a margin call?
Who stars in Margin Call?
Apr 3, 2024 · A margin call occurs when the value of securities in a brokerage account brokerage account falls below a certain level, known as the maintenance margin, requiring the account holder to deposit...
May 24, 2023 · There are three ways to receive a margin call: You trade for more than the buying power in your account. The value of your margin account decreases. Your broker raises the house maintenance margin requirements. Let’s explore each case. First case: You trade for more than the buying power in your account.
A margin call is a demand from your brokerage firm to increase the amount of equity in your account to bring it into compliance with margin requirements. If your account has breached either the minimum equity, or Reg T requirement, your brokerage will issue a margin call, effectively suspending or inhibiting opening new positions in your ...
May 17, 2022 · A margin call is a notification from a brokerage that the investor must deposit cash, transfer in eligible securities, or sell stocks/securities to raise a specified amount of money within a...
- Stephen Simpson
Feb 27, 2024 · A margin call is when a brokerage firm demands that an investor add cash or equity into their margin account because it has dipped below the required amount. The margin call usually follows a loss in the value of investments bought with borrowed money from a brokerage, known as margin debt.
- How Do Margin Calls Work?When the equity in an investor’s margin account falls below the maintenance margin, a brokerage firm will issue a margin call. Maintenance margins...
- How Long Do I Have to Cover a Margin Call?Brokerage firms are not required to give investors a set amount of time. As mentioned in the example above, a brokerage firm normally gives custome...
- How can you satisfy your margin call in margin trading?A trader can satisfy a margin call by depositing cash or securities in their account or selling some securities in the margin account to pay down p...
- How are fed and house calls different?A fed call, or a federal call, occurs when an investor’s margin account does not have enough equity to meet the 50% equity retirement outlined in R...
Mar 6, 2024 · What is a Margin Call? Copied. A margin call is a demand from a broker to a trader to deposit additional funds or securities to bring the trader’s margin...
Dec 7, 2023 · A margin call is when you’re required to deposit more funds to keep the amount of your investments above the margin. The upside of buying stocks on margin is...
