Even in case the value of your account continues to decline following the margin call, your broker w
Even in case the value of your account continues to decline following the margin call, your broker would possibly take further steps in closing down more positions without consulting you.
Understanding Margin Calls and How to Avoid Them:-
Explaining the Formula
A margin call occurs when the value of your investments is below a certain threshold and the equity in your margin account is not enough to cover the borrowed funds. To avoid a margin call, it is important to understand how margin trading works and the formulas that are used to calculate the amount of equity required in a margin account.