Page 1
Page 1
Started By
Message
locked post

Margin Call

Posted on 5/17/13 at 8:15 pm
Posted by Doc John
The Cave
Member since Nov 2010
410 posts
Posted on 5/17/13 at 8:15 pm
Can somebody explain this stock technique to me in non-broker jargon.
Posted by GrantTheFan
Baton Rouge
Member since Nov 2010
336 posts
Posted on 5/17/13 at 8:32 pm to
You borrow the money to buy the stock(s). Most brokerages have some minimum account value threshold before they'll allow you to have margin privileges. There can be varying levels of margin allowed, but it's generally a 30% minimum, so for example if you have 10k in equity, you can margin up to 7k of purchases. If the stock(s) drop in value below that threshold, the brokerage will give you a margin call, meaning to have X amount of time to deposit cash into the account or they will sell enough of your stock(s) to meet that margin call.
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 5/18/13 at 2:04 am to
quote:

Can somebody explain this stock technique to me in non-broker jargon.


It means you made a large bet that didn't work out.
first pageprev pagePage 1 of 1Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram