Questions?
We have answers

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.

Please note that the Interest Margin Rate can change without notice given market conditions.

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...

Share article
Copied!

Passfolio is your US stock broker available in over 170 countries. Sign up today to invest the US!