how to cover a margin call
the investor typically has two to five days to act if their account value drops to a level where a margin call is issued by their broker these are the options for doing so using the margin call example above a broker may close out any open positions to replenish the account to the minimum required value if an investor isn t able to meet the margin call they may be able to do this without the investor s approval the broker may also charge an investor a commission on these transaction s the investor is held responsible for any losses sustained during this process the amount of a margin loan depends on a security s purchase price and is therefore a fixed amount but the dollar amount determined by the maintenance margin requirement is based on the current account value not on the initial purchase price that s why it fluctuates 