What does it mean if I get a margin call?

What does it mean if I get a margin call?

What does it mean if I get a margin call?

A margin maintenance call, is when your portfolio value (minus any cryptocurrency positions) falls below your margin maintenance requirement.To get more news about Margin Call, you can visit wikifx.com official website.

Margin maintenance calls can happen for a variety of reasons, including a decline in the value of your holdings, ACH reversals, or options assignments. If you get a margin maintenance call, you need to bring your portfolio value (excluding any cryptocurrency positions) back up to your minimum margin maintenance requirement, or you risk Robinhood having to liquidate your position(s) to bring your portfolio value (excluding any cryptocurrency positions) back above your margin maintenance requirement.
How do I avoid a margin call?
Margin calls are no fun, so we’re happy to give you some tips on how to avoid them.

You can compare the stocks value in your portfolio (Account tab Menu Investing) to the margin maintenance value (Account tab Menu Margin investing) to determine if you're approaching a margin call.
Look out for updates from us when your portfolio value (excluding any cryptocurrency positions) is getting close to your brokerage account’s margin maintenance requirement. You’ll typically receive a message in the app when you’re close to receiving a margin call, and an email once you’ve received one.
What do I do if I get a margin maintenance call?
There are a number of ways to resolve a margin call:

You can deposit additional funds or initiate an account transfer to increase your portfolio value above the margin maintenance requirement (excluding any cryptocurrency positions).
You may choose to sell some of your securities to cover the required amount. The proceeds from the sales can help cover your margin call. This may allow you to avoid depositing additional funds. Keep in mind that you may also sell non-marginable positions such as options or cryptocurrency to cover your maintenance call.
Disclosures
All investments involve risk including loss of principal. No investments are FDIC insured. All examples are hypothetical and do not reflect actual or anticipated results. Content is provided for informational purposes only; it does not constitute investment advice and is not a recommendation for any security, account type or feature, or trading strategy. Past performance does not guarantee future results.

Margin investing involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. Before using margin, customers must determine whether this type of trading strategy is right for them given their specific investment objectives, experience, risk tolerance, and financial situation.

Regardless of the underlying value of the securities you purchased, you must repay your margin debt. Robinhood Financial can change its maintenance margin requirements at any time without prior notice. If the equity in your account falls below the minimum maintenance requirements (varies according to the security), you’ll have to deposit additional cash or acceptable collateral. If you fail to meet your minimums, Robinhood Financial may be forced to sell some or all of your securities, with or without your prior approval.

Robinhood Financial charges a standard margin interest rate of 9% and a margin interest rate of 5% for customers who subscribe to Gold. The margin interest rate is calculated by adding 6.50% (for non-Gold customers) or }margin_gold_base_rate} (for Gold customers) to the upper bound of the Target Federal Funds Rate, which is set by the Federal Reserve and is subject to change without notice. The formulas used to calculate the margin interest rate are subject to change at Robinhood Financial’s discretion. The margin rates shown are as of July 28, 2022 and might change at any time without notice and at Robinhood Financial’s discretion. The standard margin interest rate will be rolled out to customers who do not subscribe to Gold in phases over a period of time, subject to eligibility criteria, and so may not be available immediately to all customers.

For more information, please see FINRA’s Investor Alert and Robinhood Financial’s Customer Relationship Summary, Margin Disclosure Statement, and Margin Agreement. These disclosures contain important information on Robinhood Financial’s products and services, conflicts of interests, lending policies, interest charges, and the risks associated with margin investing enabled accounts.

Cryptocurrency trading and custodial services are offered through an account with Robinhood Crypto. Robinhood Crypto is not a member of SIPC or FINRA. Robinhood Crypto and Robinhood Financial are separate but affiliated entities. Cryptocurrencies are not securities and your cryptocurrency investments are not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.


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