Theoretically, what is the worst thing to happen if one fails to cover a margin call? Can the broker sue you/take missing amount to collection claims? Or do they just simply liquidate your account of all positions/cash? Fail to Cover Margin Call byu/2ayoyoprogrammer inoptions Posted by 2ayoyoprogrammer
AbolishThe on September 2, 2024 5:46 am Only one way to find out!!! Well not really but hell yeah dude i have faith in you get after it
NoobSFAnon on September 2, 2024 5:50 am They can liquidate other assets. There are different kinds of calls with different outcomes. Some will freeze trading, some liquidate.
Sarduci on September 2, 2024 5:53 am They sue you, win, and your bank accounts and wages are effectively garnished the rest of your life. Remember, when you’re short $1000 it’s your problem, when you’re short $100,000,000 is the broker’s problem.
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Only one way to find out!!! Well not really but hell yeah dude i have faith in you get after it
They can liquidate other assets. There are different kinds of calls with different outcomes. Some will freeze trading, some liquidate.
They sue you, win, and your bank accounts and wages are effectively garnished the rest of your life.
Remember, when you’re short $1000 it’s your problem, when you’re short $100,000,000 is the broker’s problem.