how to avoid a margin call
investors should carefully consider whether they need a margin account before opening one most long term investors don t have to buy on margin to earn solid returns and these loans aren t free brokerages charge interest on them but there are a few things you can do to manage your account avoid a margin call or be ready for it if you want to invest with margin a good way for an investor to avoid margin calls is to use protective stop orders to limit losses in any equity positions in addition to keeping adequate cash and securities in their account 