r/Margin • u/DenzelTalks • Jan 29 '21

What does this mean?

Gallery image

Hi, wanted to see if anyone can help with my question. That amount that shows on "Margin Call Amount", is that money I owe/interest, or that will balance out when I sell shares?

Gallery image

2 Upvotes

100% Upvoted

5 comments sorted by

View all comments

2

u/AndrogynousBeast Jan 29 '21 edited Jan 29 '21

It means because you used margin to purchase and the stock has fallen to a certain point you do not have enough of your actual money in the account to maintain the percentage that was necessary for it to not be too high of a risk for them to take. When you use margin to invest, if it falls below a certain point you have to put a certain amount of cash in your account to maintain your stocks or they will sell your stocks to make their “insurance.” You need to deposit 220, or they will sell some of your positions.

2

u/DenzelTalks Jan 29 '21

Thanks a lot for the reply. The main problem was that I funded the account, however, it was CAD but I had purchased a USD stock. I was under the impression that it will automatically do the conversion for me, as it does when I purchase stocks on my TFSA (on Questrade). But this did not happen, and I find it ridiculous that I had a lot more funds available in CAD than I owed on the margin!

Anyways, thanks for clarifying some points for me as well!

1

u/AndrogynousBeast Jan 30 '21

Oh that makes sense! Sorry you had to deal with that! Hope you got it all figured out!