Asked by: Cristie Conle
asked in category: General Last Updated: 31st May, 2020

What is a Federal margin call?

A federal call, (i.e., a Regulation T - Reg T call) is an initial margin call that is only issued as a result of an opening transaction. Under Federal Reserve Board Regulation T, brokers can lend an investor up to 50% of the total purchase price of a stock for new, or initial, purchases. This is called initial margin.

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Likewise, people ask, what happens when you get a margin call?

A margin call occurs when the value of an investor's margin account (that is, one that contains securities bought with borrowed money) falls below the broker's required amount. The investor must either deposit more money in the account or sell some of the assets held in the account.

Also, how do you satisfy a margin call? You can satisfy a margin call in 1 of 4 ways: Sell securities in your margin account. Or buy securities to cover short positions. Send money to your account by electronic bank transfer, wire, or check by overnight mail.

Consequently, what is a margin house call?

A house call is a margin call by the brokerage firm for a customer whose equity has fallen below the margin maintenance requirement of that brokerage firm.

How long do you have to satisfy a margin call?

two to five days

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