How is margin call computed?

A margin call will be made if the market value of the borrowed securities increases. If the increase causes your margin ratio (MR) to fall below 130% (but above 120%) of the borrowed and sold securities, your TR will inform you and you will have to satisfy the call within 2 market days. If your MR falls below 120%, you will have to satisfy the call on the day of call. Once a margin call is made, you will have to restore the required margin ratio back to 130%.

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)