When you use borrowed funds in your Plus Account (Margin), these are provided by the broker. This gives you greater buying power, but also carries risks. A Margin Call occurs when the value of your portfolio falls below the minimum required to maintain your open positions.
A Margin Call depends on several factors, such as the amount of the loan you are using (you don't have to use the full amount), the positions you hold and their value, your cash, the market value, etc.
If the value of your assets falls significantly, our custodian will require you to deposit more funds to cover your portfolio positions. If no action is taken, positions will be sold automatically at random to reduce the outstanding loan.
To cover a Margin Call, you can deposit the required amount into your investment account or sell positions accordingly.
Folionet voluntarily notifies clients who have Margin Calls. However, it does not require authorization to liquidate a client's positions in the event of a Margin Call if necessary.
A marginable security is an asset that meets the regulatory and operational requirements to be purchased using credit or leverage. This means the broker is authorized to lend you money to help buy these shares and can accept them as collateral in margin transactions.
Not all securities qualify as marginable. Therefore, it is important to verify whether a specific asset is eligible before trading with leverage.
A Maintenance Margin Call is a notification issued when the available capital in your investment account falls below the minimum level required to maintain your open positions. This threshold is set by the broker and is designed to protect both the investor and the institution from adverse market movements.
Upon a Margin Call, the client must take action to restore the required margin level. This can be achieved by depositing additional funds, selling shares, transferring assets from another investment account, or a combination of these options.
Responding to a Margin Call in a timely manner is essential to avoid automatic liquidation of positions and maintain control over your portfolio.
This is the minimum capital you must maintain in your Personal Plus Account (Margin) to keep your open positions. It is set by the broker and may vary depending on the type of shares you purchased using leverage.
Maintaining this minimum level is essential to avoid a Margin Call — a request to contribute additional funds or adjust your portfolio if your account value falls below the established requirement.
