what is a margin call 
a margin call is a scenario in which a broker who had previously extended a margin loan to an investor sends a notice to that investor asking them to increase the amount of collateral in their margin account when faced with a margin call investors often need to deposit additional cash into their account sometimes by selling other securities if the investor refuses to do so the broker has the right to forcefully sell the investor s positions in order to raise the necessary funds many investors fear margin calls because they can force investors to sell positions at unfavorable prices 