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How do I reduce the risk of a Margin Call?

A margin call happens when the margin maintenance reaches the minimum amount for your account (this number will vary according to your equity). 

  • Borrow less than the maximum amount allowable in your account. Consider setting your own personal maintenance level.
  • Monitor your portfolio, especially during uncertain market conditions, to anticipate a potential decline in value.
  • Pay margin loan interest regularly 
  • Be prepared for the possibility of a margin call—have other financial resources in place or predetermine which portion of your portfolio you would sell.

SUGGESTED READINGS

What is a Margin Call?

Margin calls typically happen when there is a large decline in the value of your equity...

What do I do if I get a Margin Call?

If you get a margin call you should liquidate positions or deposit funds or securities immediately to avoid possible liquidation of assets..

How can I Increase my Margin Available?

To increase the margin available just add funds or securities to your account...

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