Series 28: Regulation T Margin Calls

Regulation T Margin Calls

A margin call is a demand to increase the equity in a margin account to bring it up to the required standards. Margin calls may come from one of two sources. A federal call is issued when equity in a margin account is not sufficient to meet the initial margin requirement, as a result of a new trade. This is the margin call described in Regulation T. A maintenance margin call is issued by your broker when the equity in the account falls below the minimum maintenance requirement.

Example: Suppose you open a margin account and purchase $200,000 of equity securities. You deposit $10