Margin Call: Complete Guide

FXReviews Margin Call Trading on margin enables you to borrow money in order to purchase securities such as stocks and make greater investments . What is a Margin Call ? A margin call serves as a reminder that you must restore your margin account to good standing . To improve the ratio of assets you own totally to the amount you borrowed , you may need to put cash or new securities into your account , or you may need to sell securities . SOH REP How does Margin call work ? A margin call is sent to an investor when the balance of a margin account falls below the statutory minimum margin . A margin call is a broker's demand that a customer tops up their account by infusing additional cash or selling a portion of the security to bring the account to the statutory minimum . Tai How to calculate margin call price ? Here is the equation or formula through which you calculate margin call price easily . Margin Call Price = Initial Purchase Price x ( 1 - Initial margin ) / ( 1 - Maintenance Margin ) Read More at : fxreviews.best/blog/margin-call-complete-guide/