What is a margin call?
A margin call is issued when the account has surpassed the amount it can borrow. This will occur if the equity falls below the total margin requirement for the positions in the account. This is often the result of stock holdings dropping below the level required to maintain the loan extended.
How much time do I have to cover a margin call?
A margin call is due immediately when called, though we may offer an extension at our own discretion. The Questrade risk department will close part or all of the positions within 3 days or sooner to enforce the margin call if no action is taken to cover the margin call or the margin call is high relative to equity.
TIP: please ensure we always have your current email address on record so that we can reach you if your account does enter a margin call.
How can I cover margin call?
Cover your margin call by depositing funds or reducing your existing positions.
What are Questrade's margin requirements for stock?
Many well known stocks trading over $2 have a 30% margin requirement, which means that to buy $100 worth of stock you can put $30 towards the purchase and borrow the $70. For more details, please refer to the
stocks and
options section of our website.
How are the balances calculated?
Market value of all positions
+ Cash balance
= Equity
|
- Market value of long options
+ Market value of short options
- Margin requirement on all positions
= Maintenance excess
|
X3.33
= Buying power
|
What is a concentrated position?
A concentrated position is when the market value of security is greater than equity in the account. Although theoretically one can buy stock to the maximum of 3.3 times of equity (if the stock is eligible for 30% reduced margin), Questrade advises against creating concentrated positions and may from time to time request you to reduce concentrated positions.