What is a margin call?

A margin call occurs when the equity in your margin account falls below your minimum margin maintenance requirement. When this happens, you must promptly deposit additional funds or marginable securities, or liquidate existing positions to restore your account equity to the required level.

Margin calls are most common during periods of high market volatility when security values are declining rapidly. The key points about margin calls are:

  1. Redbridge can issue a margin call at any time to restore account equity to required levels based on current market risk. Margin requirements may change without notice.

  2. When you receive a margin call, you must deposit more funds or sell securities immediately to increase your equity. Failure to do so promptly can result in positions being liquidated without your consent.

  3. The amount required in a margin call will depend on various factors like security values, margin requirements, and your open positions. You are responsible for restoring your equity to the level specified in the margin call.

  4. Margin calls are issued to protect Redbridge and our clearing firm against potential losses from customers unable to cover losses or meet obligations. You give us authorization to act when you sign up for margin.

If you have any questions about margin requirements, trading or receive a margin call, please contact our customer service team at 800-950-5266 Monday through Friday 9 AM to 5 PM EST. You can also email or chat with us online if your question is not urgent.