does the total level of margin debt have an impact on market volatility 
a high level of margin debt can exacerbate market volatility clients are forced to sell stocks to meet margin calls during steep market declines this can lead to a vicious circle where intense selling pressure drives stock prices lower triggering more margin calls and more selling the bottom linebuying on margin isn t for everyone not all investors will have available funds to reach initial and maintenance margins on margin trading accounts it can give investors more bang for their buck but there are downsides it s only an advantage if your securities increase enough to repay the margin loan and the interest on it another headache can be the margin calls for funds that investors must meet a margin call may require you to deposit additional cash and securities you may even have to sell existing holdings or you may have to close out the margined position at a loss margin calls can occur when markets are volatile so you may have to sell securities to meet the call at lower than expected prices disclosure this article is not intended to provide investment advice investing in securities entails varying degrees of risk and can result in partial or total loss of principal the trading strategies discussed in this article are complex and should not be undertaken by novice investors readers seeking to engage in such trading strategies should seek out extensive education on the topic 