Margin Calls Can Turn a Good Investment into a Nightmare

Margin calls can turn a good investment into a financial disaster for investors. When an investor buys securities on margin, they are borrowing money to make the investment. If the investment falls below the margin requirement, the investor will receive a margin call. This requires them to deposit more funds or sell securities to meet the requirement. Margin calls are often underestimated by investors, especially during market volatility. To avoid margin calls, investors should have a diversified portfolio, monitor their margin requirements, and have a contingency plan. By being informed and proactive, investors can navigate margin trading with confidence. #bitcoin #crypto #disaster #investor #margin #margincalls