Margin calls can happen for a variety of reasons—a decline in the value of your holdings, ACH reversals, or options assignments—causing the portfolio value (minus any cryptocurrency positions) to fall below your margin maintenance requirement. If you get a margin call, you need to bring your portfolio value (minus any cryptocurrency positions) back up to your minimum margin maintenance requirement, or you risk Robinhood having to liquidate your position(s) to bring your portfolio value (minus any cryptocurrency positions) back above your margin maintenance requirement.
Margin calls are no fun, so we’re happy to give you some tips on how to avoid them.
There are two ways for you to resolve a margin call:
Margin trading 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.
For more information please see Robinhood Financial’s Margin Disclosure Statement, Margin Agreement and FINRA Investor Information. These disclosures contain information on Robinhood Financial’s lending policies, interest charges, and the risks associated with margin accounts.