📉💥 What’s a Margin Call? Let’s Break It Down! 💥📉

So you’re trading stocks and using borrowed money (aka “buying on margin”) 💸📈

That means you’re using some of your own cash + some from your broker to invest.

But uh-oh… the market dips 📉 and your investment loses value 😬

👉 Suddenly, your broker says:

“Hey! You need to add more money or we’ll sell your stuff!”

That’s a margin call 🚨

🧮 How It Works:

1. You buy $10,000 in stocks• $5,000 is yours 💰

• $5,000 is borrowed from your broker 🏦

2. Stock value drops to $6,000 😱• Your equity is now only $1,000

• Broker wants you to have at least $1,500 (maintenance margin) ⚖️

3. You get a margin call 📞• Add $500 more 💵

• Or sell some stocks to cover the loss 🧾

#trading #bussinessman