Question: What is the difference between a house call and a margin call?

One such call is the initial margin call, also known as the Federal call, and is made when the account holder has inadequate equity to meet the initial requirement. The second call is the house call, also referred to as a maintenance call initiated when the equity falls below the minimum amount needed to offset losses.

What is a margin house call?

A house call is a demand by a brokerage firm that an account holder deposit enough cash to cover a shortfall in the amount of money deposited in a margin account. The call is made when the account balance has fallen below the maintenance margin required by the brokerage firm.

Does a margin call mean I owe money?

Margin Calls A margin call occurs if your account falls below the maintenance margin amount. A margin call is a demand from your brokerage for you to add money to your account or closeout positions to bring your account back to the required level. But you still owe $500 to your broker!

How long do I have to cover a margin call?

two to five days Normally, the broker will allow from two to five days to meet the call. The brokers calls are usually based upon the value of the account at market close since various securities regulations require an end-of-day valuation of customer accounts. The current close for most brokers is 4 p.m., Eastern time.

How long do you have to cover a margin call?

two to five days Many margin investors are familiar with the routine margin call, where the broker asks for additional funds when the equity in the customers account declines below certain required levels. Normally, the broker will allow from two to five days to meet the call.

How long do I have to pay a margin call?

two to five days Normally, the broker will allow from two to five days to meet the call. The brokers calls are usually based upon the value of the account at market close since various securities regulations require an end-of-day valuation of customer accounts. The current close for most brokers is 4 p.m., Eastern time.

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