I've invested in a margin account and recently lost some money. I'm worried about the consequences and want to understand what happens when you lose money on a margin account. Will I owe the broker money? Can my other assets be affected?
7 answers
CryptoAlchemy
Sat Dec 28 2024
the broker will take action to protect their financial interests.
EchoSolitude
Sat Dec 28 2024
The broker may request that you deposit more money into your account.
Lucia
Sat Dec 28 2024
One such action is issuing a margin call.
ShintoBlessing
Sat Dec 28 2024
A margin call is a demand by the broker for additional funds or securities.
EmeraldPulse
Sat Dec 28 2024
This is necessary to maintain the required margin level in the account.