What is Margin Call?

Margin call occurs when the account equity falls below the margin requirement. You must add funds to restore your equity above the margin requirement.

Margin Call Scenario

How to Answer Margin Call?

• Option 1: Deposit More Funds – Adding cash to your account increases equity above the margin requirement. Do notify your FBR with proof of transaction.
• Option 2: Close Positions – Liquidate positions to free up margin and bring equity above the margin requirement.
• Option 3: Market Recovery (Risky) – If the market moves in your favor and equity exceeds the margin requirement, you can hold your position. However, if equity drops again, there’s still a risk of forced liquidation.

What Happens If I Did Not Take Any Action?

If you take no action and the market doesn’t go in your favor, the broker will liquidate your positions until your equity meets the margin requirement before the market closes.