A margin call is a demand from your stock broker<\/a> to increase the amount of equity that is being held in your account.<\/p>\nThis can be done by putting in more cash or by liquidating existing positions that you have in order to generate the required amount of money.<\/p>\n\nKey Takeaways:<\/span><\/h2>\n\nA margin call is when a broker demands you increase the amount of equity that is being held in your account.<\/li>\nBrokers may automatically sell your securities if you fall below what is known as the maintenance margin threshold.<\/li>\nMargin calls can be covered by depositing more cash or margin-eligible securities, as well as by liquidating existing positions.<\/li>\nYou can avoid margin calls by ensuring that you understand your broker’s requirements so you know how much leeway you’ll have in volatile conditions.<\/li>\nMaintaining a cushion of cash in your account and keeping on top of the performance of investments can help investors handle margin calls.<\/li>\n<\/ul>\n<\/div><\/div>\n\n \n \n \n \n <\/i>\n <\/button>\n \n Table of Contents\n <\/span>\n Table of Contents<\/span>\n <\/div>\n \n \n \n \n What is a Margin Call?<\/a>\n <\/div>\n <\/li>\n \n \n Key Takeaways:<\/a>\n <\/div>\n <\/li>\n \n \n When Do Margin Calls Happen?<\/a>\n <\/div>\n <\/li>\n \n \n How Margin Calls Work<\/a>\n <\/div>\n <\/li>\n \n \n What Triggers a Margin Call?<\/a>\n <\/div>\n <\/li>\n \n \n Formula for Margin Call Price<\/a>\n <\/div>\n <\/li>\n \n \n Types of Margin Calls<\/a>\n <\/div>\n <\/li>\n \n \n How to Cover a Margin Call<\/a>\n <\/div>\n <\/li>\n \n \n Tips to Avoid Margin Calls<\/a>\n <\/div>\n <\/li>\n \n \n Margin Call Example<\/a>\n <\/div>\n <\/li>\n \n \n The Bottom Line<\/a>\n <\/div>\n <\/li>\n \n \n FAQs<\/a>\n <\/div>\n <\/li>\n \n \n References<\/a>\n <\/div>\n <\/li>\n <\/ol>\n <\/div>\n \n Show Full Guide<\/p>\n <\/button>\n <\/div>\n <\/div>\n <\/div>\n <\/section>\n \n \n \n \n <\/i>\n <\/button>\n \n Table of Contents\n <\/span>\n <\/div>\n \n \n \t\t\t\t\t \t\t\t\t\t \n \n What is a Margin Call?<\/a>\n <\/div>\n <\/li>\n \t\t\t\t\t \t\t\t\t\t \n \n Key Takeaways:<\/a>\n <\/div>\n <\/li>\n \t\t\t\t\t \t\t\t\t\t \n \n When Do Margin Calls Happen?<\/a>\n <\/div>\n <\/li>\n \t\t\t\t\t \t\t\t\t\t\n\t\t\t\t\t\t Show Full Guide<\/span>\n\t\t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t \t\t\t\t\t \n \n How Margin Calls Work<\/a>\n <\/div>\n <\/li>\n \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t \t\t\t\t\t \n \n What Triggers a Margin Call?<\/a>\n <\/div>\n <\/li>\n \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t \t\t\t\t\t \n \n Formula for Margin Call Price<\/a>\n <\/div>\n <\/li>\n \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t \t\t\t\t\t \n \n Types of Margin Calls<\/a>\n <\/div>\n <\/li>\n \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t \t\t\t\t\t \n \n How to Cover a Margin Call<\/a>\n <\/div>\n <\/li>\n \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t \t\t\t\t\t \n \n Tips to Avoid Margin Calls<\/a>\n <\/div>\n <\/li>\n \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t \t\t\t\t\t \n \n Margin Call Example<\/a>\n <\/div>\n <\/li>\n \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t \t\t\t\t\t \n \n The Bottom Line<\/a>\n <\/div>\n <\/li>\n \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t \t\t\t\t\t \n \n FAQs<\/a>\n <\/div>\n <\/li>\n \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t \t\t\t\t\t \n \n References<\/a>\n <\/div>\n <\/li>\n <\/ol>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n
This can be done by putting in more cash or by liquidating existing positions that you have in order to generate the required amount of money.<\/p>\n
Show Full Guide<\/p>\n <\/button>\n <\/div>\n <\/div>\n <\/div>\n <\/section>\n
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