Questions tagged [margin-call]
The margin-call tag has no usage guidance.
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Can margin interest be added to a debit balance beyond 50% equity?
I carry a margin balance and I am always trying to plan ahead for the worst-case scenarios…
If I get below 50% equity in my mutual fund brokerage account because of market fluctuation and a margin ...
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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'...
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Net Liquidity vs. Maintenance Margin margin call approximation
I have been trying to understand margin calls properly, but since my margin was always insignificant I never really did. Now that my stocks dropped significantly I feel like I may be close to a margin ...
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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 ...
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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 ...
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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 ...
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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):
...
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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 ...
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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 ...
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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 ...
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Questions about Margin in the Futures
(I'm beginner)
1- Can I buy/pay the whole contract price without margin (the broker will have no risk at all then- no need for maintenace margin) ?
2- Is this borrowing money so I need to pay interest ...
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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 ...
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Does a one stock leveraged ETF behave like margin?
I am reading about leveraged etfs and I am very confused. It seems they don't always follow the stock prices they should be following and not always doing what they are supposed to do.
For example a ...
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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 ...
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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&...
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