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Margin call

A margin call is demand by a broker for additional funds, additional money or securities, because of an adverse price movement in one or more of your held securities to bring a margin account up to the minimum maintenance margin.

A broker will make a margin call if the price of one or more of the securities you have bought, with borrowed money, moves adversely (usually droping, but rising if shorting) past a certain point, a point called the minimum maintenance margin.





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