Failure to Meet a Margin Call
The margin call requires you to add new funds to your margin account. If you do not meet the margin call, your brokerage firm can close out any open positions in order to bring the account back up to the minimum value. This is known as a forced sale or liquidation.
Can you get an extension on a margin call?
An investor is free to deposit additional cash into a margin account at any time in an attempt to avoid a margin call. However, even if additional deposits are made, subsequent declines in the market value of securities in the account may result in additional margin calls.
How do you settle a margin call?
How to satisfy a margin call
- Sell securities in your margin account. ...
- Send money to your account by electronic bank transfer, wire, or check by overnight mail.
- Sell or exchange Vanguard mutual funds from an account held in your name and use the proceeds to purchase shares of your money market settlement fund.
