Margin Calls

What is a margin call?

Margin calls happen when the value of underlying stocks in your account fall, causing the account’s value to fall below your margin maintenance. If you get a margin call, you will have three days to bring your account value back up to your margin maintenance.

We’ll also send updates if your account happens to get close to the margin maintenance.

How do I avoid a margin call?

Margin calls are no fun, so we’re happy to give you some tips on how to avoid them.

  • Stay informed about what’s going on with the stocks you’ve bought with margin. If you think your stocks may take a tumble, you might thinking about selling them, or depositing more cash into your account to prevent getting into a margin call.
  • Check out your Margin Health in the Account Summary section of your app. Here you’ll find how much value you can afford to lose before you enter a margin call. You want this number to stay positive–the bigger the better!
  • Look out for updates from us when you’re getting close to a margin call. You’ll receive a card in your app, a notification on your mobile home screen, and an email when you’re approaching a margin call.

What do I do if I get a margin call?

There are two ways to resolve a margin call:

  1. You can deposit additional funds to increase your account value above the margin maintenance. This will allow you to keep your positions.
  2. You can sell some of your shares. The proceeds from the sales will help cover your margin call. This will allow you to avoid depositing additional funds.
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