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Margin call

A margin call occurs mostly when the value of your margin account falls below the brokerage firm’s required maintenance margin. This happens when the market value of the shares in your margin account falls. Usually, the brokerage firm will issue a margin call and ask you to add money or shares to your margin account. If you are unable to heed the margin call, your brokerage will sell your shares until your account satisfies the maintenance margin once again.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

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