How do I solve the call on the edge?
In order for investors to resolve the call, investors can close the position, save securities or cash to meet the margin, or to allow brokers to sell securities from the account. When investors open the margin accounts, it is advisable to read the conditions of agreement with care so that they know what to expect when a broker issues a margin call. If investors do not respond to the request for a margin request, the intermediary can sell securities from the investor's account without receiving an explicit permit. The law usually requires a minimum deposit for such accounts in the form of a percentage of the total loan. This can be provided in cash or securities. If the investor's reserves hold a decrease in value, the amount on the deposit will drop and it is possible to fall below the margin requirement. The broker issues a challenge to the margin to ask the investor to correct the problem.
Investors holding open positions can close them and solve the call on the edge. This may include the purchase or sale of securities depending on the position. The broker can order theseVKY on request from the customer and will work to obtain the best possible agreement for them. If the investor planned to close the position anyway, it can be a healthy solution to the problem.
Another option is to store more cash or securities. Investors should have funds available in other accounts and can quickly convert them to brokers to meet the margin request. The investor should notify the broker to expect an incoming transfer from another financial institution, so the broker knows that he will not sell securities to solve the problem. If the broker does not receive a deposit or a problem, he will contact the investor.
The investor can also do nothing and force the broker to sell securities, or specifically tell the brokers to sell some of the securities on the account. The broker decides which securities to sell on the basis of current values and needs unless the investor provides KONCrete instructions. Brokers want to protect the financial interests of their clients, and it is therefore unlikely that they would take a bad sales decision when selling securities when fulfilling calls on a margin. If the client feels that the broker has violated a trust obligation, this may be a reason for the court.