Monday, July 20
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Topic: brokers

The New York Stock Exchange building on Wall Street
Markets
Monday, 7/20, 01:18 AM

How a margin call works, and why your broker does not have to ask

  • Borrowing from your broker to buy shares magnifies gains and losses alike.
  • The part investors most often misunderstand is what happens when the position moves against them: the firm can sell your holdings without calling you first, and it, not you, decides what gets sold.

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