A margin call is a demand from your broker for you to deposit additional funds or securities into your account.
A margin call is a demand from your broker for you to deposit additional funds or securities into your account. This demand occurs when the value of your securities falls below a certain level, known as the margin requirements. Margin calls typically happen when the markets are volatile, and prices fall rapidly.
If you don't meet a margin call, your broker may sell some of your securities to cover the shortfall. This is a forced sale, and it can happen without your consent.
Margin calls can be stressful, but they're also a common part of investing in volatile markets. Understanding how margin calls work can help protect yourself from potential losses.
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