Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [margin-call]

25 questions
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Robinhood Reg T Call, please explain

I receive an email from Robinhood today that I do not understand. (*value's fictional but in ratio) Our records show that there wasn't a sufficient deposit or liquidation in your account yesterday to cover your Reg T call, and thus your call is…
Dustin
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Trading Places (1983 film): Is it really possible for futures exchanges to seize their members' assets?

I am trying to understand a scene in Trading Places (1983 film). After Randolph and Mortimer Duke failed to corner the frozen concentrated orange juice (FCOJ) futures market, the following conversation occurs:…
Flux
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How to work out acceptable amount of margin loan?

I want to make a better return on my investments. One option is to get a margin loan, borrowing money to buy shares. If the price goes up, I'll multiply the gains. The downside of a margin loan is that if share price drops, losses are multiplied.…
DarcyThomas
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Zero cash buying power, what would margin maintenance be?

I have $0 cash buying power but have loads of margin buying power because of my current marginable securities. If I make a margin trade for any amount does that mean I have 0% equity in that position and my maintenance level would be at the exact…
Fueled By Coffee
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Can I buy index funds without margin and own it like a stock?

I am a total newbie so this might be a silly question but I am trying to buy S&P 500 and own it like a stock. The problem is that my broker (XTB) only has the option to buy it with margin and leverage is 1:20. I don't like this because broker can…
hdw3
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Why didn't a margin call prevent me from losing more than my initial investment when buying on margin?

I entered a trade with 10 USD and a leverage of 1:100. There was a margin call, and the position was automatically closed. I would like to know how I lost 30 USD when I entered a trade with only 10 USD. Wasn't the margin call supposed to prevent me…
Andjelika Zogovic
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Can I use stocks as margin for commodities futures?

Last week, I bought 4 shares of emicro gold futures (https://www.cmegroup.com/trading/metals/precious/e-micro-gold_contract_specifications.html) worth about 70k. I got a margin call for owning those gold despite having 400k worth of equities and…
Hisham Hijjawi
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Margin call and shorting, depends on cash or both cash and held security?

When you short a stock if the value of the stock goes above a threshold you will get a margin call. Is this threshold dependent on the total value of your held stock + cash or just available cash? I'm assuming if the shorted stock goes above your…
Lightsout
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Margin: Is my math correct?

I was recently introduced to the concept of margin and have been reading about it on and off for the last 2 months. I want to use margin funds for my house remodeling, and would appreciate if someone could ascertain my math below. Problem: I own…
elexhobby
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How does maintainance margin work when withdrawing money on margin?

I have an account with IB and 50% maintenance margin. The most common use of margin ist buying stocks with loaned money, for example: You buy 100 shares for 1$ each, 50% of which is your money, the rest is margin. You owe 50$. Stock price drops by…
user1721135
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What happens if a futures exchange increases margin requirements while I have open positions?

Specifically, what happens if my current position is already close to (or at) the maintenance margin level and the exchange then increases margin requirements? For example, First Day (end-of-day): Initial Margin = 1000 Maintenance Margin =…
wanageeska
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Can a broker liquidate your position after market hours?

Let's say I short a stock and hold it overnight. And let's say it's doing very badly and the stock is gapping up over 100% during after market hours. Since I can't use a stop loss during extended hours, my loss keeps accumulating until the market…
Mac_79
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Will I receive an RT call or am I safe?

I just opened a position on WeBull to short a stock with a market value of $1,554. The total amount of cash in my account is $5200, but my day trading and overnight buying power is saying 0 after I open my position. Will I receive an RT call if I…
Jason Parker
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Is there an exact percentage drop for a stock for it to trigger a margin call?

I think in US stock market, it is common to be able to borrow 100% and buy the stock, and the margin requirement is 30%. (some firms call it "Margin Maintenance Requirement" or "MMR"). So if my account doesn't have any stock yet, and the stock is…
nonopolarity
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Maintenance margin for fixed collateral

My portfolio is composed of all-equity plus 20% out of money protective puts. If the market drops 20%+ (as it is doing now), my portfolio value is constant at 80% of my original investment. I would like to start buying more stocks on margin as the…
David Karam
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