Questions tagged [margin-call]

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5
votes
1answer
3k views

Robinhood Reg T Call, please explain

I receive an email from Robinhood today that I do not understand. (*value's fictional but in ratio) Our records show that there wasn't a sufficient deposit or liquidation in your account ...
3
votes
3answers
112 views

How to work out acceptable amount of margin loan?

I want to make a better return on my investments. One option is to get a margin loan, borrowing money to buy shares. If the price goes up, I'll multiply the gains. The downside of a margin loan is ...
2
votes
1answer
220 views

Zero cash buying power, what would margin maintenance be?

I have $0 cash buying power but have loads of margin buying power because of my current marginable securities. If I make a margin trade for any amount does that mean I have 0% equity in that position ...
1
vote
1answer
61 views

Maintenance margin for fixed collateral

My portfolio is composed of all-equity plus 20% out of money protective puts. If the market drops 20%+ (as it is doing now), my portfolio value is constant at 80% of my original investment. I would ...
0
votes
1answer
91 views

How does short margin works internally?

I understand the concept of being short, but I don't understand how it works, maybe is easy to explain with an example: 1) A has $1 in his account. 2) B has $1 in his account. 3) A wants to buy ...
0
votes
1answer
37 views

Effect on margin of a cash withdrawal

I have a Reg-T margin account with Interactive Brokers. I would like to confirm my assumptions about the effect that making a cash withdrawal on margin would have on the account. Let's say I have $200 ...
0
votes
1answer
68 views

Can a broker make it appear they have executed a 'buy to close' trade but in actual fact they simply have taken your position?

If you wrote a call option, and the underlying spiked up creating a margin call - which was not filled, can your broker make it appear that they executed a 'buy to cover' to close your position but in ...