Margin Call (Investments & Retirement) - Definition, Examples, Advice | Bolder Money

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Definition

A demand from your broker to deposit additional funds or securities into your margin account when its value falls below required levels.

What to consider

Know what triggers a margin call so you can prepare in advance.
Maintain extra funds as a buffer to cover potential calls.
Review your account frequently to stay ahead of issues.

Real world scenarios

When the value of his leveraged portfolio dropped significantly, David received a margin call, requiring him to deposit additional funds to avoid forced liquidation.

Related terms

Investments & Retirement

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