4. Maintain a Cash Buffer: One way to avoid margin calls is by maintaining a cash buffer in your margin account. This extra cash can act as a cushion, helping you... Read More
Author: finxlseo
2. Monitoring Your Investments Frequently: Keep track of the performance of your investments, especially if you are trading in volatile markets. Monitoring them regularly will help you catch early signs of... Read More
How to Avoid a Margin Call? Although margin calls are part and parcel of trading on the margin, there are several steps you can take to decrease your chances of receiving... Read More
2. Poor Investment Performances: When the shares or securities you bought on margin drop in value or do not perform so well, your equity becomes depleted and may lead to a... Read More
Why do margin calls occur? Margin calls happen when the value of your investments decreases and your equity in the margin account falls below the maintenance margin level. Several factors can... Read More
Margin calls are an essential part of trading that a trader needs to know so that he does not face losses. If the traders maintain sufficient equity in their accounts... Read More
3. Examples of margin calls A broker lends an investor $10,000 to purchase securities. The initial margin requirement is 50%. The investor has to deposit $5,000 in his account and the broker... Read More
3. How are margin calls calculated? Margin calls are calculated on the basis of the value of the securities in the account, the amount of money borrowed, and the margin requirements... Read More
2. Types of Margin Calls The margin calls are of two kinds, maintenance margin calls and initial margin calls. Maintenance margin calls happen when the account goes below the required level for... Read More
1. What is a margin call? A margin call is when a broker asks an investor for additional funds to cover losses in the investor's account. An investor, borrowing from the broker... Read More