Margin call Guide, Meaning , Facts, Information and Description
A margin call is the demand, in a margin account, for additional funds, additional money or securities, to be deposited into the account. The margin call arises because of an adverse price movement in one or more of the securities held in the account. The margin call requires the account owner to bring the account value up to the minimum acceptable amount called the maintenance margin. Because the securities held in a margin account are acquired partially with borrowed money, the broker has the right to demand that the account owner maintain this minimum balance in an account. Margin calls occur on long positions when the value of held securities falls, and on short positions when the value of held securities rises. The maintenance margin is set by Regulation T which states that the margin account can have at most 50% of its value be borrowed funds.This is an Article on Margin call. Page Contains Information, Facts Details or Explanation Guide About Margin call