First, let's define a margin
call. This is a demand from a broker to an investor to deposit
additional money into a margin account when securities that were bought on
margin have fallen in value past a certain point.
We send out a margin call by email when buying power goes below zero. (We talk
about how margin buying power is calculated here.)
This happens because the securities that you have bought with borrowed money
have fallen in value.
Of course, because this is a simulation you don't have the ability to deposit
more money into your account. So, in order to get out of a margin call you must
sell off some of your securities (preferably short sales).
If you don't bring your buying power above zero within two days, we will
automatically liquidate part of your portfolio and make buying power positive
for you. For more on this, see our forced sale help file.
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