I am now facing a margin call, and I have a question, Bought a stock at $x on %50 margin maintenance After Jan 28, the stock dropped, and my margin maintenance increased to 100% It says I need to deposit about 50k to resolve the account deficit I want to HOLD this stock long term now and not take a loss Question: If I do deposit that 50k and the stock goes down even further would I have to keep depositing more money?
NOT sure....but if your entire margin balance is $50K......it sounds like, if you deposit that amount, that would mean you now own the stock outright. The best way to know for sure is to just call your broker......if your broker accepts calls. If not pull up your statement and see what your TOTAL margin loan balance is. I am ASSUMING that if your margin maintenance is now 100% and they want you to deposit $50K...that will pay off the margin loan in full. BUT....that is just an assumption. So.....call your broker to be sure.
If you buy a stock on 50% margin, it means that you borrowed half the cost of the shares. If the broker then requires 100% margin, you must repay the loan (50% of the cost of the stock) and you now own the stock outright. You will not have to put up any further money since you have paid off the loan (ignoring the borrow cost).
