What is a margin call?

A margin call is a warning that you need to bring your margin account back into good standing. You might have to deposit cash or additional securities into your account, or you might need to sell securities to increase the ratio of assets you own entirely to the amount you borrowed.

What is a'margin call'?

What is a 'Margin Call'. A margin call happens when a broker demands that an investor deposits additional money or securities so that the margin account is brought up to the minimum maintenance margin. A margin call occurs when the account value falls below the broker's required minimum value.

What is the movie margin call about?

Margin Call is a 2011 American drama film written and directed by J. C. Chandor in his feature directorial debut. The principal story takes place over a 24-hour period at a large Wall Street investment bank during the initial stages of the financial crisis of 2007–2008.

How can I prevent margin calls?

You can decrease the likelihood you receive a margin call by doing the following: Leave a cash cushion in your account. Rather than investing all of your money in securities, setting aside some of your money as cash can help prevent margin calls. That’s because cash’s value is stable and it is always entirely owned by you.