What does it mean if I get a margin call?
A margin maintenance call is when your portfolio value decreases to less than your total maintenance requirement.
Margin maintenance calls can happen for a variety of reasons, including the market moving against your positions, transfer reversals, or options assignments.
If you get a margin maintenance call, you must increase your portfolio value back up to your total maintenance requirement, or you risk Robinhood closing some or all of your securities positions, with or without your prior approval.
Margin calls are no fun, so we’re happy to give you some tips on how to avoid them.
You can resolve a margin call in a few different ways, including:
All investments involve risk including loss of principal. No investments are FDIC insured. All examples are hypothetical and don’t reflect actual or anticipated results. Content is provided for informational purposes only, doesn’t constitute investment advice, and isn’t a recommendation for any security, account type or feature, or trading strategy. Past performance doesn’t guarantee future results.
Margin investing involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. Before using margin, customers must determine whether this type of trading strategy is right for them given their specific investment objectives, experience, risk tolerance, and financial situation. Robinhood Singapore can change its maintenance requirements at any time without prior notice. If the equity in your account decreases to less than the total maintenance requirement, you’ll have to deposit additional cash or acceptable collateral. If you fail to meet your minimums, Robinhood Singapore may be forced to sell some or all of your securities, with or without your prior approval.
For more information, review FINRA’s Investor Alert, the Margin Disclosure Statement, and Margin Account Agreement. These disclosures contain important information on Robinhood Singapore’s products and services, conflicts of interests, lending policies, interest charges, and the risks associated with margin investing enabled accounts.