Margin Call

A margin call occurs when the value of an investor's margin account falls below the broker's required minimum, known as the maintenance margin. When this happens, the investor must either deposit more funds or sell assets to cover the shortfall. Typically, brokers require that a margin call be met within 24 to 48 hours, though this can vary by firm and agreement. Failure to meet a margin call can result in the broker selling the investor's securities without notice to cover the debt.
A margin call is typically triggered when the securities bought on margin decrease in value or if the broker increases the maintenance margin requirement.
If you're considering investing on margin, it's crucial to understand the risks involved, as it amplifies both potential gains and losses, making your investments more volatile.