How to Handle Margin Calls

December 28, 2022
Watch to learn what to do if you get a margin call and how to potentially avoid them.
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How do margin loans work at Schwab?

Understanding Futures Margin

Learn how changes in futures prices affect margin and your account.

Short Selling: Can You Profit from Falling Stocks?

Watch to learn how short selling, or shorting, a stock allows investors to sell a stock high, buy it low, and pocket the difference.

Three Ways to Use Margin and Leverage

Learn three ways investors and traders can maximize the use of margin while managing the risks of leverage in their investing strategies.

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any investment decisions.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

When considering a margin loan, you should determine how the use of margin fits your own investment philosophy. Because of the risks involved, it is important that you fully understand the rules and requirements involved in trading securities on margin. Margin trading increases your level of market risk. Your downside is not limited to the collateral value in your margin account. Schwab may initiate the sale of any securities in your account, without contacting you, to meet a margin call. Schwab may increase its "house" maintenance margin requirements at any time and is not required to provide you with advance written notice. You are not entitled to an extension of time on a margin call. For more information on margin, please visit Margin Loans at Schwab.

Schwab does not provide tax advice. This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.

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