1 Answer
<p>A margin call occurs when the value of a margin account falls below the account’s maintenance margin requirement. It is a demand by a brokerage firm to bring the margin account’s balance up to the minimum maintenance margin requirement. To satisfy a margin call, the investor of the margin account must either deposit additional funds, deposit unmargined securities, or sell current positions. </p><p>By determining the margin call price, we are determining the minimum price the security can trade at without falling below the maintenance margin. </p>
Please select pages to share
shared
